The single European currency has depreciated by 0.62% in value against the Japanese Yen since December 27. The currency pair is trading in a narrow descending channel pattern.
Currently, the exchange rate is testing a resistance cluster formed by the 50– and 100– hour SMAs and the monthly pivot point at 121.95.
If the resistance cluster holds, the EUR/JPY pair will likely continue to trade in the narrow descending channel today.
However, if the pair breaks the resistance levels, a surge towards the 122.40 could be expected within this session.
