The 200-hour simple moving average has pressured the common European currency lower against the Japanese Yen. The currency pair tested the bottom border of an ascending channel pattern at 125.60 during the Asian session on Tuesday.
Everything being equal, it is likely that the EUR/JPY currency exchange rate will strengthen within this session. The potential upside target will be near a swing high of 126.69.
However, a resistance cluster formed by the combination of the 100– and 200– hour SMAs and the weekly PP at 126.11 could hinder such movement during the following trading session.
