Downside risks have been dominating the single European currency against the Japanese Yen since December 24. the currency pair depreciated more than 110 base points during the last two days.
The exchange rate is trading near the upper boundary of a one-week descending channel pattern at 125.87 during the first part of Wednesday’s session and could be set for a breakout.
If the breakout occurs, the EUR/JPY currency exchange rate will target a resistance cluster formed by the combination of the weekly, the monthly pivot points and the 100-hour simple moving average at 127.27.
