During yesterday’s trading session, the common European currency declined by 109 basis points or 0.90% in value against the Japanese Yen. The currency pair breached the 50– and 100– hour SMAs and the weekly pivot point at 120.27 on Monday.
Currently, the exchange rate is trading near the bottom border of an ascending channel pattern at 120.13. A breakout will most likely within this session.
If the breakout occurs, a decline towards the 200– hour simple moving average at 119.71 could be expected today.
However, if the channel pattern holds, the EUR/JPY currency exchange rate could make a slight upside retracement within the following trading session.
