The common European currency declined by 51 pips or 0.42% against the Japanese Yen on Wednesday. The currency pair tested the lower line of a descending channel pattern at 122.64 during the Asian session on Thursday.
Given that the exchange rate has bounced off the bottom border of the channel pattern, a surge towards the 123.40 level could be expected during the following trading session.
However, a resistance level at 123.20 area could provide a barrier for bullish traders within this session.
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