The common European currency has been trading in a junior ascending channel against the Japanese Yen since March 28. The currency pair re-tested the lower boundary of the channel pattern at 125.04 during yesterday’s trading session.
Technical indicators flash strong sell signals on the daily time frame. Therefore, the currency exchange rate could edge lower during the following trading session.
However, the EUR/JPY pair could aim for the weekly R2 at 125.70 within this session.
If the resistance level holds, bearish traders are likely to push the exchange rate lower towards the 200-hour simple moving average at 124.70 today.