The common European currency declined by 145 basis points or 1.21% in value against the Japanese Yen on Tuesday. The EUR/JPY currency pair breached the lower boundary of an ascending channel pattern at 118.38 on Wednesday morning.
Given that the exchange rate has breached the dominant ascending channel pattern, a decline towards the 117.00 area could be expected within the following trading session.
On the other hand, the currency exchange rate might make an upside reversal from the monthly S1 at 118.22 during the following hours.
