The common European currency surged by30 pips or 0.23% against the Japanese Yen on Monday. The currency pair breached the 50– hour simple moving average during yesterday’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, a decline towards the weekly pivot point at 129.76 could be expected today.
However, if the channel pattern holds, bullish traders are likely to drive the currency exchange rate higher during the following trading session.
