EUR/JPY has performed exactly as expected. The correction from 140.04 is unfolding to perfection and the break below the neckline support near 135.15 yesterday activated the S/H/S top for a continuation lower towards the 38.2% correction at 130.22 and possibly even closer to the 50% corrective target at 127.20 as the next major downside targets.

Short-term we could see a minor consolidation after test support near 132.68, but it should just be a matter of time before renewed downside pressure is seen towards the 130.22 target.