During yesterday’s trading session, the single European currency surged by 206 basis points or 1.73% in value against the Japanese Yen. The currency pair tested the monthly R1 at 120.91 on Monday.
After the exchange rate breached the monthly R1, the EUR/JPY pair made a downside reversal. Most likely, bears could pressure the pair lower during the following trading session. The possible target will be towards the weekly and the monthly PPs and the 50– hour SMA at 119.64.
Furthermore, technical indicators suggest that the currency exchange rate could breach the support cluster at the 119.64 area today.
