The Eurozone single currency depreciated about 70 base points against the Japanese Yen on Wednesday. The decline was temporary stopped by a support cluster formed by the weekly and the monthly PPs at 131.05.
Everything being equal, the currency pair is likely to move north towards the upper boundary of a descending channel at 131.76 within this session.
However, a resistance level formed by the 50-hour simple moving average at 131.39 might restrict the EUR/JPY currency exchange rate from reaching its target today.
If this resistance level holds, the price will change its direction and most likely aim for a re-test of the support cluster as mentioned above
