EUR/JPY Bounces Off Support

The EUR/JPY currency pair bounced off a support level formed by the 200– hour simple moving average at 129.56 on March 16. As a result, the common European currency surged by 93 pips or 0.73% against the Japanese Yen during yesterday’s trading session.

As for the near future, the currency exchange rate is likely to continue to edge higher in an ascending channel pattern. The possible target for bullish traders would be near the 130.86 area.

A potential downside reversal could occur from the weekly resistance level at 130.86 within the following trading session.