The single European currency traded sideways movement against the Japanese Yen on Monday. The 50– and 100– hour SMAs provided resistance for the currency during yesterday’s trading session.
If the resistance cluster, set by the 50– and 100– hour simple moving averages at 117.90 holds, a decline towards the weekly S1 at 117.40 could be expected within this session.
However, if the exchange rate breaks the resistance cluster, a potential breakout through the upper boundary of a descending channel pattern could occur during the following trading session.
