The single European currency depreciated about 56 base points against the Japanese Yen on Wednesday. The currency pair breached both the 50– and 100-hour SMAs during yesterday’s trading session.
Currently, the 200-hour simple moving average is providing support for the exchange rate at 122.15.
If this support level holds, a surge towards the 123.20 regions could be expected during the following trading session.
However, if the pair passes the 200-hour SMA, a potential breakout through the bottom border of an ascending channel pattern is likely to occur today.