The common European currency traded above a support cluster formed by the combination of the weekly and the monthly pivot points at 122.59 during yesterday’s trading session.
The exchange rate broke the significant support level at 122.59 during the morning hours of today’s trading session.
Given that a breakout had occurred, it is likely that the EUR/JPY currency exchange rate will continue to edge lower today. The potential targets for bearish traders will be near a swing low of 122.20.
However, the pair could make a brief retracement towards the 100-hour SMA at 122.84 within this session.