EUR/JPY Technical Analysis: Bears now eyeing a retest of 1-month old trading range support near 127.60

   •  The pair extended overnight rejection slide from 100-day SMA and dropped to fresh weekly lows, around the 128.00 handle on dismal Euro-zone PMI prints.

   •  The mentioned hurdle coincides with the top end of a broader trading range, held over the past one month or so and forming a rectangle on the daily chart.

EUR/JPY daily chart

   •  Adding to this, a pickup in the JPY's safe-haven demand, amid the prevalent risk-off mood, further collaborated to the pair's sharp intraday downfall. 

   •  A decisive breakthrough 100-hour SMA was seen as a key trigger for bearish traders, though oversold conditions on the 1-hourly chart might help limit losses.

1-hourly chart

   •  Meanwhile, technical indicators on 4-hourly/daily charts have just started gaining negative momentum and thus, increase prospects for an extension of the ongoing slide. 

   •  Hence, a follow-through weakness, towards challenging the one-month-old trading range, around the 127.65-60 region, now looks a distinct possibility.