The common European currency declined by 90 pips or 0.72% against the Japanese Yen on Wednesday. The currency pair breached the 50-, 100– and 200– hour simple moving averages during Wednesday’s trading session.
Currently, the exchange rate is trading near the lower boundary of an ascending channel pattern and could be set for a breakout.
If the breakout occurs, bearish traders are likely to pressure the exchange rate towards the 123.40 level today.
However, if the channel pattern holds, the currency exchange rate would make a pullback towards the 124.60 level within this session.
