EUR/JPY Analysis: testing support cluster at 117.99

Dukascopy Bank Team Dukascopy Bank SA

EUR/JPY

The common European currency has depreciated about 1.11% in value against the Japanese Yen since September 20. A breakout occurred through the lower boundary of an ascending channel pattern at 118.50 during the morning hours of Monday's trading session.

Currently, the exchange rate is testing a support cluster formed by the combination of the weekly S1 and the monthly pivot point at 117.99.

If the support cluster holds, a brief retracement towards the 118.66 area might occur within this session.

However, if the EUR/JPY pair passes the support cluster, the currency exchange rate might fall by 140 pips before the end of today's trading session.

Author

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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