The common European currency declined by 51 pips or 0.41% against the Japanese Yen on Monday. The decline was stopped by the 200– hour simple moving average during yesterday’s trading session.

The currency pair breached the 200– hour SMA on Tuesday morning. Most likely, bearish traders could pressure the exchange rate lower during the following trading session. A breakout through the lower boundary of an ascending channel pattern is likely to occur.

However, if the channel pattern holds, a surge towards the 50– and 100– hour SMAs at 124.62 could be the target today.

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