The common European currency surged by 67 points or 0.54% against the Japanese Yen on Tuesday. The currency pair tested the upper line of an ascending channel pattern at 124.46 during the Asian session on Wednesday.
If the channel pattern holds, bears could pressure the exchange rate lower during the following trading session. The possible target would be near the 50– hour SMA at 123.87.
However, if the currency exchange rate breaks the ascending channel pattern, a surge towards the weekly R2 at 125.05 could be expected within this session.
