The common European currency surged by 50 pips or 0.40% against the Japanese Yen on Wednesday. The currency pair tested the weekly R3 at 126.53 during yesterday’s trading session.
The exchange rate is currently trading near the upper boundary of an ascending channel pattern and could be set for a breakout.
If the breakout occurs, a surge towards the 127.50 level could be expected within this session.
However, if the channel pattern holds, bearish traders could drive the currency exchange rate lower towards the 50– hour SMA at 125.89 today.
