The common European currency surged by 45 pips or 0.37% against the Japanese Yen on Friday. The currency pair tested the 100– hour simple moving average at 123.63 during Friday’s trading session.
Currently, the exchange rate is trading near the upper line of a descending channel pattern and could be set for a breakout.
If the breakout occurs, a surge towards the 200– hour SMA at 124.12 could be expected within this session.
However, if the channel pattern holds, bearish traders would continue to pressure the currency exchange rate lower during the following trading session.
