EURJPY Analysis: Potential breakout

Dukascopy Bank Team Dukascopy Bank SA

EURJPY

EUR/JPY has been diminishing its trading range for the last two consecutive trading session. This bearish momentum has left the currency pair losing around 380 base points or 2.95% of its value.

The common European currency breached the monthly pivot point at 126.83 and also tested a support cluster set by the combination of the weekly and the monthly PPs near the 125.25 mark.

Technical indicators flash bearish signals for the exchange rate today; This could suggest that a breakout through the lower boundary of a junior descending channel is likely to occur 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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