The single European currency has depreciated about 160 base points against the Japanese Yen since yesterday. The currency pair breached a support cluster formed by the combination of the weekly and the monthly PPs at 131.05 and also tested the lower boundary of a descending channel at 130.84 during the first part of today’s session.
Everything being equal, it is likely that the currency exchange rate will continue moving south within this session. The psychological targets for the rate will be at the monthly S2 near the 130.00 mark.
A potential U-turn north is likely to occur at that support level during the following trading session.
