The common European currency bounced off the 38.20% Fibonacci retracement level at 120.74 on Monday. As a result, the EUR/JPY pair has surged by about 43 basis points since yesterday’s trading session.
As for the near future, the currency pair will most likely continue to surge until it reaches the weekly R1 at 121.39.
If the resistance level, formed by the weekly R1 holds, the currency exchange rate will make downside retracement towards the 61.80% Fibonacci retracement level at 121.02 within the following trading session.
