The single European currency declined by 59 basis points or 0.48% against the Japanese Yen on Thursday. The currency pair tested the lower boundary of a narrow descending channel pattern during yesterday's trading session.
Everything being equal, the 50– hour simple moving average could continue to pressure the exchange rate lower during the following trading session. A breakout through the bottom border of the narrow descending channel pattern is likely to occur.
However, if the channel pattern holds, bulls are likely to push the currency exchange rate towards the 123.60 area within this session.
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