The common European currency depreciated by 60 basis points against the Japanese Yen on Thursday. The currency pair breached the lower boundary of an ascending channel pattern during yesterday’s trading session.
Currently, the exchange rate is testing a support cluster formed by the 200– hour simple moving average and the combination of the weekly PP and the monthly S1 at 121.50.
If the support cluster holds, bulls are likely to drive the price towards the 122.42 within this session.
However, if the currency exchange rate breaks the support cluster, a decline towards the 120.50 area could be expected in the short-term
