The common European currency has depreciated about 1.11% in value against the Japanese Yen since September 20. A breakout occurred through the lower boundary of an ascending channel pattern at 118.50 during the morning hours of Monday’s trading session.
Currently, the exchange rate is testing a support cluster formed by the combination of the weekly S1 and the monthly pivot point at 117.99.
If the support cluster holds, a brief retracement towards the 118.66 area might occur within this session.
However, if the EUR/JPY pair passes the support cluster, the currency exchange rate might fall by 140 pips before the end of today’s trading session.
