Downside risks prevailed in the market on Wednesday, thus sending the common European currency to decline by 81 base points against the Japanese Yen. The pair broke the three weeks ascending channel as shown on the 1(H) chart.
The currency pair tested a support cluster formed by the 200-hour simple moving average and the combination of the weekly and the monthly PPs near the 131.75 mark.
If this support cluster holds, the EUR/JPY currency exchange rate could move towards the 50– and 100-hour SMAs at 132.65 during the following trading session.
Although, if the rate passes the support line, a new descending channel might reveal tomorrow.
