The single Eurozone currency declined by 62 pips or 0.49% against the Japanese Yen on Monday. The currency pair tested the 200– hour simple moving average at 125.47 on Tuesday morning.
If the support line formed by the 200– hour SMA holds, a surge towards the monthly resistance level at 126.48 could be expected during the following trading session.
However, if the exchange rate breaks the support level, a breakout through the lower boundary of an ascending channel pattern could occur before the end of Tuesday’s trading session.
