The common European currency surged by 182 basis points against Japanese Yen on Thursday. The surge was stopped by a resistance cluster formed by the 50– and 100– hour SMAs at 117..89 during yesterday’s trading session.
Currently, the exchange rate is testing the 200– hour simple moving average and the upper boundary of a descending channel pattern at 118.46.
If the resistance cluster formed by the upper border of the channel pattern and the 200– hour SMA hold, it is likely the EUR/JPY pair will make a slight pullback today.
However, given that the pair is near the border of the channel, a breakout could occur within this session.
