The common European currency surged by 74 pips or 0.58% against the Japanese Yen on Wednesday. The currency pair breached the upper line of an ascending channel pattern during yesterday’s trading session.
Given that a breakout has occurred, bulls are likely to continue to pressure the exchange rate higher during the following trading session. The potential target for bullish traders would be near the weekly R3 at 129.68.
However, the weekly R2 at 129.06 could provide resistance for the currency exchange rate in the shorter term.