The common European currency has appreciated by 24 basis points against the Japanese Yen since yesterday’s trading session. The currency pair breached the 50– hour simple moving average at 120.20 during the European session on Tuesday.
Given that the exchange rate has breached the 50– hour SMA, a surge towards the 200– period SMA could be expected within this session.
If the resistance level, formed by the 200– period SMA holds, a brief retracement will likely follow.
However, if the currency exchange rate passes the resistance line, the next target for bullish traders would be near the weekly R1 at 120.69.