The 50– hour simple moving average has continued to pressure the Eurozone single currency lower against the Japanese Yen. The currency pair has declined by 65 basis points since Wednesday’s trading session.
Currently, the exchange rate is trading near the bottom border of a descending channel pattern at 121.48.
From a theoretical point of view, a breakout could occur within the following trading session.
Although, if the channel pattern holds, the currency exchange rate will likely make brief upside retracement towards the 50– hour SMA at 121.85 in this session.
