The common European currency depreciated about 80 base points against the Japanese Yen on Tuesday. The currency pair tested a support level formed by the 50% Fibonacci retracement level at 121.72 during Tuesday’s trading session.
After hitting the 50% Fibo, the exchange rate made an upside reversal. By and large, it is likely that the EUR/JPY currency pair will make some gains within this session. The potential will be at the 122.47 area.
However, technical indicators flash sell signals on the daily time frame chart. Therefore, the currency exchange rate might reverse from the current price level at 122.14 and continue its downward swing today.
