The common European currency has appreciated by about 54 basis points against the Japanese Yen since Monday’s trading session. The currency pair tested the weekly pivot point at 120.60 on Tuesday morning.
If the resistance level formed by the weekly PP holds, a decline towards the psychological support line at 120.00 could be expected during the following trading session.
However, if the currency exchange rate breaks the weekly PP, bullish traders could drive the price towards the 121.06 within this session.
Meanwhile, technical indicators demonstrate bearish signals on the 4(H) time-frame chart.