The common European currency has surged by 72 pips or 0.60% against the Japanese Yen since Friday’s trading session. A breakout occurred through the upper boundary of a descending channel pattern on Monday morning.
Given that a breakout had occurred, the EUR/JPY pair would continue to edge higher within this session. The potential target for the exchange rate will be at the 121.00 level.
On the other hand, the currency exchange rate could reverse from the current price level at 120.62 and aim for a retest of the 120.00 during the following trading session