The common European currency declined by 52 pips or 0.39% against the Japanese Yen on Tuesday. A breakout occurred through the lower boundary of an ascending channel pattern during yesterday’s trading session.
Given that a breakout has occurred, the exchange rate could continue to edge lower during the following trading session. The potential target for the currency pair would be near the 131.40 area.
However, a support cluster formed by the weekly pivot point and the 200– hour simple moving average at 131.73 could provide support for the currency exchange rate within this session.
