EUR/JPY Technical Analysis: Breaks below 126.00 mark, tests 50% Fibo. level on dovish ECB

   •  The cross finally broke down of its two-day-old consolidative trading range and tumbled to fresh one-week lows, below the 126.00 handle in reaction to the ECB's dovish shift.

   •  The pair's inability to sustain above 200-hour SMA and a subsequent break below 38.2% Fibo. level of the 124.23-127.52 recent up-move was seen as a key trigger for bearish traders.

   •  Technical indicators on the 1-hourly chart are already pointing to slightly oversold conditions and seemed to be the only factor helping the cross to find some support near 50% Fibo. level.

   •  Meanwhile, oscillators on the 4-hourly chart have just started drifting into the bearish territory and also seemed losing positive momentum on the daily chart, pointing to further downside.

   •  Hence, a follow-through selling has the potential to continue dragging the pair further towards challenging its next major support near mid-125.00s, coinciding with 61.8% Fibo. level.

EUR/JPY 1-hourly chart