The common European currency declined by 33 pips or 0.25% against the Japanese Yen on Wednesday. The currency pair breached the 50– hour simple moving average during yesterday's trading session.
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 200– hour SMA at 129.91 could be expected today.
However, if the channel pattern holds, buyers are likely to pressure the currency exchange rate higher today.
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