The single European currency surged by 325 basis points or 2.78% in value against the Japanese Yen on Friday. The currency pair breached the 50-, 100– and 200– hour SMAs during Friday’s trading session.
Everything being equal, the exchange rate will most likely continue to trend bullish within this session. A breakout through the upper boundary of a descending channel pattern could occur.
However, if the currency exchange rate fails to break the descending channel pattern, a downside retracement could be expected during the following trading session.
