“¢ The cross met with some aggressive supply on Monday and broke through a four-month-old ascending trend-line support, which now seemed to cap the attempted intraday recovery move.
“¢ Given the recent pullback from 126.80 region – forming a bearish double-top chart pattern formation on the daily chart, today’s slump might have already confirmed a near-term bearish breakdown.
“¢ However, highly oversold conditions on hourly charts seemed to be the only factor behind the pair’s intraday bounce from lows, though bearish oscillators on the daily chart suggest further downside.
“¢ Hence, any subsequent recovery towards the 124.30 region might still be seen as an opportunity for bearish traders and positioning for an eventual slide to the 122.65 region – YTD daily closing lows.
EUR/JPY daily chart
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