The single European currency depreciated about 51 base points against the Japanese Yen on Monday. The currency pair breached a support level formed by the 50-hour simple moving average at 126.35 during yesterday’s trading session.
The exchange rate was stranded between SMAs during the first half of Tuesday’s session. The 50-hour SMA was providing resistance for the pair, while the 100– hour SMA and the lower boundary of an ascending channel pattern was providing support at 126.22.
A breakout from the moving averages could be expected during the following trading session. Technical indicators suggest an upside breakout.