EUR/JPY Two Scenarios Likely

The Eurozone single currency has declined by 54 pips or 0.42% against the Japanese Yen since yesterday’s trading session. The decline was stopped by the 200– hour SMA at 128.33 on Tuesday morning.

Currently, the exchange rate is trading near the lower boundary of an ascending channel pattern and could be set for a breakout.

If the breakout occurs, a decline towards the weekly support level at 127.38 within this session.

However, if the channel pattern holds, buyers are expected to pressure the currency exchange rate higher during the following trading session.