The common European currency surged by 87 points or 0.69% against the Japanese Yen on Wednesday. The currency pair breached the 50-, 100– and 200– hour SMAs during yesterday’s trading session.
All things being equal, the exchange rate is likely to continue to edge higher during the following trading session. A breakout through the upper boundary of an ascending channel pattern could occur.
However, technical indicators suggest the 4H time-frame chart. Therefore, the EUR/JPY currency exchange rate could make a brief pullback towards the 126.63 within this session.
