The common European currency surged by 90 points or 0.72% against the Japanese Yen on Tuesday. The currency pair breached the 50– and 100– hour SMAs during yesterday’s trading session.
Currently, the exchange rate is trading near the upper boundary of a descending channel pattern and could be set for a breakout.
If the breakout occurs, a surge towards the 126.80 level could be expected within this session.
However, if the channel pattern holds, bearish traders are likely to pressure the currency exchange rate lower during the following trading session.
