The single European currency bounced off a support level formed by the weekly S1 at 120.21 during the morning hours of Thursday’s trading session. As a result, the EUR/JPY currency pair appreciated by about 65 basis points.
The exchange rate is currently testing a resistance cluster formed by the 50-, 100– and 200– hour SMAs at 120.92.
If the currency exchange rate passes the resistance cluster, as mentioned above, bulls are likely to drive the price towards the weekly R1 at 121.39 within this session.
However, if the cluster holds, a brief pullback will likely follow in the nearest future.
