The common European currency declined by 68 pips or 0.58% against the Japanese Yen on Wednesday. The decline started after the exchange rate tested the upper boundary of a descending channel pattern at 117.16 during yesterday’s trading session.
All things being equal, the currency pair could continue to edge lower. The possible target for the EUR/JPY pair would be at the support cluster formed by the weekly S1 and the monthly S1 at 116.08.
A potential upside reversal could occur from the support cluster, as mentioned above within the following trading session.
