Bullish momentum dominated the single European currency against the Japanese Yen on Wednesday. The currency pair surged by 190 basis points or 1.60% in value during yesterday’s trading session.
Everything being equal, bullish sentiment could continue to pressure the exchange rate higher during the following trading session. The potential target will be near a resistance cluster formed by the weekly R2 and the monthly pivot point at the 120.93 area.
However, the EUR/JPY exchange rate is expected to make a brief downside retracement towards the weekly PP at 119.36 in the shorter term.
