The Eurozone single currency declined by 84 pips or 0.70% in value against the Japanese Yen on Monday. The currency pair tested the lower boundary of an ascending channel pattern at 118.87 during yesterday’s trading session.
Given that the exchange rate has failed to surpass the resistance cluster at the 119.64 area, the EUR/JPY pair will most likely continue to edge lower. A potential breakout through the lower boundary of the ascending channel pattern could occur.
However, if the ascending channel pattern holds, bullish traders might pressure the currency exchange rate higher within the following trading session.