Downside risks have continued to pressure the common European currency lower against the Japanese Yen. The currency pair declined by 185 pips or 1.54% in value during Friday’s trading session.
The exchange rate made a U-turn from the lower boundary of a descending channel pattern during the morning hours of Monday’s session. As a result, the pair breached a resistance cluster formed by the weekly and the monthly PPs at 119.64. The potential target will be at the upper border of the channel pattern at 120.91.
However, the 50-, 100– and 200– hour SMAs at the 120.15 area could provide resistance for the currency exchange rate within this session.
