Upside risks prevailed in the market on Friday, thus sending the common European currency to gain about 65 base points against the Japanese Yen. The currency pair tested the upper boundary of an ascending channel pattern during the end of Friday’s trading session.
However, after hitting the up border of the channel pattern at 125.00, the exchange rate made a brief retracement down.
In the meantime, it is likely that the Euro will maintain the ascending channel pattern until a breakout through the lower boundary occurs.
Although, a support cluster formed by the weekly and monthly PPs could prevent the southern breakout to happen today.
