EUR/JPY hit multi-year lows at 125.38, as yen in demand on renewed riks-off.
- The pair has been trading a falling channel and finds strong support at 125.20 which is channel base.
- Price action is well below the cloud and major moving averages are trending lower, but Stochs and RSI are at oversold levels so demand some caution.
- Doji formation evidenced in the Asian session, if pair holds channel base support, gains upto 127.40 and then 128 likely.
- On the other side, breaks below channel base at 125.20 could drag the pair to 124.95 which is next support ahead of 123.42 (Feb 8th 2013 lows).
