EUR/JPY Technical Analysis: Break below ascending trend-line sets the stage for further near-term downfall

   •  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