The single European currency has continued to decline in a descending channel pattern against the Japanese Yen. The currency pair declined by 62 basis points on Tuesday.
Everything being equal, the EUR/JPY exchange rate will likely continue to trade in the descending channel pattern. Bearish traders could break the 38.20% Fibonacci retracement level at 121.77 today.
However, technical indicators flash buy signals on the daily time-frame chart. Therefore, a potential upside reversal could occur from the 38.20% Fibo within the following trading session.
