The common European currency appreciated about 92 basis points against the Japanese Yen on Friday. The currency pair tested the upper boundary of a descending channel pattern at 118.49 during Friday’s trading session.
After hitting the upper band of the channel pattern, the exchange rate began to decline. The EUR/JPY pair will most likely continue to edge lower until it reaches a support level formed by the weekly S1 at 117.40.
If the support level holds, bullish traders could take control of the market during the following trading session.
However, the 50– hour simple moving average at 117.89 could provide support for the currency exchange rate today.
