The common European currency remained trading in a newly formed junior descending channel against the Japanese Yen on Thursday. The currency pair tested the bottom border of the channel pattern at 124.37 during yesterday’s trading session.
Technical indicators suggest that the decline of the currency exchange rate will continue during the following trading session. The downside target for the pair will be near a swing low of 123.83.
However, given that the EUR/JPY exchange rate is located near the upper boundary of the descending channel pattern, a breakout is likely to occur today.
