Whitney Houston and Ray J’s romance looked like it was going strong at West Hollywood nightclub Villa on July 26. “They sat very close together. She only had eyes for him,” says an insider. “At one point, she placed her hand on his leg.” The insider adds that Whitney only drank water and looked very happy. A friend insists that while their relationship sometimes appears rocky, they never stray too far from each other. “They’re on and off, but it’s never really over between them,” the pal says. “They always pick up where they left off.” Whitney, 45, showed off an enormous diamond when she hugged Ray J, 27.