EUR/JPY Analysis: Likely to surge

Dukascopy Bank Team Dukascopy Bank SA

EURJPY

The common European currency has depreciated about 50 base points against the Japanese Yen since yesterday's trading session. The currency pair tested the lower boundary of a junior ascending channel pattern during the Asian session on Tuesday.

After hitting the 200-hour simple moving average at 124.81, the EUR/JPY exchange rate began to gain strength.

As for the near future, it is likely that the currency exchange rate will aim at a swing high of 125.47.

However, a resistance level formed by the upper boundary of a dominant descending channel at 125.26 could hinder such movement today.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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