The EUR/JPY currency pair appreciated about 85 base points during yesterday’s trading session. The exchange rate breached the 50-hour simple moving average at 121.40 on Monday.
The pair tested the upper boundary of a descending channel pattern at 121.66 during the morning hours of Tuesday’s trading session.
If the resistance level formed by the upper border of the channel pattern holds, a decline towards the 120.80 marks could be expected today.
On the other hand, if a breakout occurs, a surge towards the 200-hour SMA at 122.07 might be the target for bullish traders within this session.
