The single European currency surged by 47 points or 0.38% against the Japanese Yen on Thursday. The currency pair breached the 100– hour simple moving average at 123.48 during Thursday’s trading session.
Currently, the exchange rate is trading near the upper boundary of a descending channel pattern and could be set for a breakout.
If the breakout occurs, a surge towards a resistance cluster at 123.81 could be expected within this session.
However, if the channel pattern holds, bears could continue to dominate the market during the following hours.