EUR/JPY analysis: Two scenarios likely

Dukascopy Bank Team Dukascopy Bank SA

EUR/JPY

The common European currency is currently trading in a narrow descending channel pattern against the Japanese Yen. The currency pair declined by 59 points or 0.47% on September 14.

Currently, the exchange rate is trading near the upper line of the narrow descending channel and could be set for a breakout.

If the breakout occurs, bullish traders could push the EUR/JPY pair towards the 126.20 level within this session.

However, if the channel pattern holds, bears are likely to continue to dominate the market during the following 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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