The common European currency depreciated about 59 basis points against the Japanese Yen on Wednesday. The currency pair tested the lower boundary of a descending channel pattern at 119.59 during the Asian trading session on Thursday.
From a theoretical point of view, the EUR/JPY exchange rate could make an upside reversal within this session. Bullish traders might target the 100– hour simple moving average at 120.17.
On the contrary, given that the currency exchange rate is trading near the bottom border of the channel pattern, a breakout could occur within the following trading session.
