The 50– hour simple moving average provided resistance for the EUR/JPY currency pair on Friday. As a result, the common European currency declined by 70 pips or 0.52% against the Japanese Yen during Friday’s trading session.
Given that the 50– and 200– hour SMAs are above the price level, bearish traders are likely to continue to pressure the exchange rate lower during the following trading session. A breakout through the lower boundary of a descending channel pattern could occur.
However, if the channel pattern holds, the currency exchange rate could make a brief retracement towards the 133.20 area today.
