The common European currency has declined by 88 basis points or 0.69% against the Japanese Yen since Friday’s trading session. A breakout occurred through the lower boundary of an ascending channel pattern at 126.10 on Monday morning.
Given that a breakout has occurred, bearish traders are likely to continue to pressure the exchange rate lower during the following trading session. The potential target for bears would be at the 125.40 level.
However, the weekly support level at 125.85 could provide support for the EUR/JPY currency exchange rate in the shorter term.
