The common European currency declined by 38 basis points or 0.30% against the Japanese Yen on Monday. A breakout occurred through the lower boundary of an ascending channel pattern during yesterday’s trading session.
Given that a breakout had occurred, bearish traders are likely to pressure the exchange rate lower during the following trading session. The potential target for bears would be near the weekly support level at 126.22.
However, if the currency exchange rate breaks the 200– hour simple moving average resistance line, a surge towards the 127.40 level could be expected today.
