EUR/JPY Analysis: Stranded between SMAs

Dukascopy Bank Team Dukascopy Bank SA

EURJPY

The single European currency depreciated about 51 base points against the Japanese Yen on Monday. The currency pair breached a support level formed by the 50-hour simple moving average at 126.35 during yesterday's trading session.

The exchange rate was stranded between SMAs during the first half of Tuesday's session. The 50-hour SMA was providing resistance for the pair, while the 100– hour SMA and the lower boundary of an ascending channel pattern was providing support at 126.22.

A breakout from the moving averages could be expected during the following trading session. Technical indicators suggest an upside breakout.

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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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