The common European currency declined by 95 basis points or 0.77% against the Japanese Yen on Wednesday. The currency pair tested the lower boundary of a descending channel pattern at 122.20 during yesterday’s trading session.
All things being equal, the exchange rate could continue to decline during the following trading session. A breakout through the lower line of the channel pattern could occur.
However, if the channel pattern holds, bullish traders might aim at the 100– hour simple moving average at 123.47 before the end of Thursday’s trading session.