The common European currency has depreciated about 121 base points against the Japanese Yen since Friday’s trading session. The currency pair tested the lower boundary of a junior descending channel pattern during the first part of today’s trading session.
If the support level formed by the bottom border of the channel pattern holds, a surge towards a resistance cluster formed by the weekly pivot point and the 50-hour simple moving average at 121.56 could be expected within this session.
On the other hand, if the EUR/JPY exchange rate breaks the junior descending channel, the pair might aim for the 120.00 marks in the short-term.
