The common European currency has depreciated about 82 base points against the Japanese Yen since Tuesday’s session. The currency pair breached the lower boundary of a descending channel pattern during the first part of Wednesday’s trading session.
Given that a breakout had occurred, it is likely that the EUR/JPY exchange rate could continue its downward movement today. The potential target will be near the monthly S2 at 119.83.
If the support level formed by the monthly S2 holds, a possible upside reversal could occur during the following trading session.
