The European single currency bounced off a support cluster formed by the weekly and monthly pivot points and the 100– hour simple moving average against the Japanese Yen during yesterday’s trading session.
As a result, the currency pair surged by 63 basis points since Wednesday’s session. As for the near future, the EUR/JPY exchange rate could make a brief retracement down. Bearish traders could target the 50– hour SMA at 120.59.
However, given that the currency exchange rate is currently trading near the upper boundary of an ascending channel pattern, a breakout could occur within this session.
