The European single currency has depreciated about 62 basis points against the Japanese Yen since yesterday’s trading session. A breakout occurred through the lower boundary of a medium-term ascending channel pattern at 120.82 during the morning hours of Wednesday’s session.
Given that a breakout had occurred, the EUR/JPY currency pair will likely continue to decline until it reaches a support line formed by the weekly S1 at 120.21.
A potential upwards reversal could occur from the support level during the following trading session.
However, the surge might not happen immediately, as technical indicators suggest that the currency exchange rate could trade sideways today.
