eyes sub-124.00 levels on growth concerns and triangle breakdown

• The EUR/JPY pair could soon drop below 124.00 as the markets are likely to price in a delay in the ECB rate hike, courtesy of weakening of domestic demand conditions across the Eurozone.
• On Monday, the International Monetary Fund (IMF) revised lower its global growth forecasts for the second time in three months, citing softening demand across Europe and recent palpitations in financial markets.
• Notably, the IMF now sees the German economy expanding 1.3 percent this year, down 0.6 percentage points from October.
• The ECB, therefore, has little room to sound dovish. Put simply, developments on the fundamental front favor downside in the EUR. Validating that argument is the triangle breakdown seen in the EUR/JPY chart below.

Hourly chart

Trend: bearish