The single European currency surged by 49 pips or 0.37% against the Japanese Yen on Wednesday. The currency pair tested a resistance level formed by the 200– hour simple moving average at 131.82 during Wednesday’s trading session.
The exchange rate is likely to continue to trend in the descending channel pattern during the following trading session. The potential target for the EUR/JPY pair will be near the 131,29 area.
However, the 50– hour simple moving average at 131.57 might provide support for the currency exchange rate in the shorter term.
