The single European currency appreciated about 100 base points against the Japanese Yen on Monday. The currency pair breached both the 50– and 100-hour SMAs during yesterday’s trading session.
Today’s trading session began with bullish momentum. And by the middle of the day, a breakout has occurred through the upper end of a junior descending channel pattern at 125.40.
Given that a breakout has occurred, it is likely that the currency exchange rate will aim for a swing high of 126.42 within this session.
However, a resistance level formed by the monthly pivot point at 125.91 could hinder such movement.
