A junior descending channel pattern has guided the common European currency lower against the Japanese Yen. The currency pair reached a two-week low during yesterday’s trading session.
The exchange rate was trading near the upper boundary of the junior descending channel at 126.33 and could be set for a breakout.
If this breakout occurs, the currency exchange rate will aim for a resistance cluster formed by the 100-hour simple moving average and the weekly pivot point at 126.74.
However, the 50-hour SMA at 126.46 could provide resistance for the EUR/JPY pair within this session.
