The single European currency appreciated about 50 base points against the Japanese Yen on Monday. The currency pair breached the 200-hour simple moving average during yesterday’s trading session.
Given that the 50-, 100– and 200-hour SMAs are low the price level, it is likely that the exchange rate surge towards a resistance line at 125.70 during the following trading session.
However, technical indicators flash sell signals on the daily time-frame chart. Therefore, the weekly R1 at 125.04 could hinder bulls from pushing the currency exchange rate higher today.
