The single European currency surged by 89 basis points or 0.75% in value against the Japanese Yen on Tuesday. A breakout occurred through the upper boundary of a descending channel pattern during yesterday’s trading session.
Given that a breakout had occurred, the EUR/JPY pair will most likely continue to edge higher. The exchange rate is likely to breach the monthly pivot point resistance level at 120.93 within this session.
Although, the currency exchange rate could make a brief downside movement towards a support cluster formed by the 50– hour simple moving average and the weekly R1 at 120.46 during the following trading session.
