EUR/JPY technical analysis: Plummets to fresh multi-month lows, near 120.00 mark on dovish ECB

• The EUR/JPY cross retreated around 50-pips and dropped to fresh multi-month lows near the key 120.00 psychological mark in reaction to dovish ECB statement.
• The cross has been trending lower along a short-term descending channel formation on the 4-hourly chart, clearly pointing to a well-established bearish trajectory.

However, highly oversold conditions on 4-hourly/daily charts might turn out to be the only factor that might hold bearish traders from placing any aggressive bets ahead of the ECB President Mario Draghi's post-meeting press conference. 

The lower end of the channel coincides with the mentioned handle, which if broken will mark a fresh near-term bearish breakdown and set the stage for an extension of the depreciating move back towards early-Jan. swing lows, sub-119.00 level. 

Alternatively, any short-covering bounce from the current support area might still be seen as an opportunity for bearish traders and seems more likely to run out of the steam near the trend-channel resistance, currently around the 120.75 region.

EUR/JPY 4-hourly chart