The common European currency has surged by 283 pips or 2.43% in value against the Japanese Yen since Monday’s trading session. The EUR/JPY currency pair tested the upper boundary of a descending channel pattern at 118.70 on Tuesday morning.
All things being equal, the exchange rate could make a slight downside retracement towards a support level at 117.62.
However, given that the currency exchange rate is currently trading near the upper boundary of the descending channel pattern, a breakout could occur within the following trading session.
