Downside risks dominated the EUR/JPY currency pair on Wednesday. As a result, the common European currency declined by 108 pips or 0.83% against the Japanese Yen during yesterday’s trading session.

All things being equal, the exchange rate could continue to edge lower in a descending channel pattern during the following trading session. The potential target for sellers will be near the 128.00 area.

However, the currency exchange rate may encounter support at 128.40 within this session.