The single European currency depreciated about 91 base points against the Japanese Yen on Monday. The decline was stopped by a support level formed by the 100-hour simple moving average at 126.50 during yesterday’s trading session.
The currency pair tested a support cluster formed by the weekly PP and the 100-hour SMA at 126.68 during the first half of today’s trading session.
If this support cluster holds, the exchange rate will aim at a swing high of 127.15 within this session.
On the other hand, if the EUR/JPY currency exchange rate passes the support cluster as mentioned above, the next target for bearish traders will be near the 200-hour SMA at 126.20.
