A failed attempt to break 138.50 established a long-term triple-top on EUR/JPY charts and has led to a substantial 300 pip pullback. This chart has been a easy one to trade for technical traders and given the historical volatility of the pair around tops, this move may still have some way to go.
Looking at the hourly chart, a pattern of sharp drops and retracements is evident. After the initial drop, there is a nearly perfect 38.2% Fibonacci retracement. The second leg down was followed by a nearly 50% bounce and third leg by only a 22% rebound. In the most-recent leg, we have already seen a 38.2% retracement.
If that correction can exceed 50% (135.61) then the hourly downtrend may be in jeopardy. In that case, look for some stronger consolidation around 136.22 – 136.33 as another cue to sell. If then downtrend continues, look to support at 134.87.