The common European currency declined by 98 pips or 0.76% against the Japanese Yen on Wednesday. The currency pair breached the 50– hour simple moving average at 127.88 during yesterday’s trading session.
All things being equal, the exchange rate is likely to continue to edge lower during the following trading session. The potential target for bears would be near the lower line of an ascending channel pattern at 126.80.
However, the 200– hour SMA at 127.27 could provide support for the currency exchange rate in the shorter term.
