The single European currency has been trading in a horizontal channel against the Japanese Yen since July 3. The currency pair tested the upper border of the channel at 121.92 on Friday.
Everything being equal, it is likely that the EUR/JPY exchange rate will continue to trade along the channel during the following trading session.
Technical indicators demonstrate that the currency exchange rate could edge lower in the coming days. The potential downside target for bearish traders might be near the monthly S1 at 121.28.
