The common European currency surged by 47 points or 0.37% against the Japanese Yen during the Asian session on Monday. The EUR/JPY currency pair tested the upper boundary of a descending channel pattern at 126.48. Currently, the exchange rate is trading near the upper line of the channel pattern and could be set for a breakout. If the breakout occurs, a surge towards the 126.80 level could be expected within this session. However, if the descending channel pattern holds, bears could pressure the currency exchange rate lower during the following trading session.
