The common European currency appreciated about 84 basis points against the Japanese Yen on Tuesday. The currency pair breached some significant resistance levels during yesterday’s trading session.
The exchange rate will most likely continue to maintain a two-week ascending channel pattern today. A breakout through the upper boundary of a dominant descending channel at 120.00 could occur within this session.
However, if the dominant channel holds, a brief retracement towards a support cluster formed by the 50– and 100– hour simple moving averages at 119.38 could be expected in the next 24 hours.