EUR/JPY Price Analysis: Technical correction could retest 138.70

• EUR/JPY comes under pressure following earlier new cycle tops.
• The ongoing corrective decline could extend to the 138.70 region.

EUR/JPY advances to new tops near 144.70, an area last traded back in January 2015, before embarking on a corrective drop.

The cross comes down from the overbought territory and the ongoing technical move carries the potential to extend to the 138.70 region, an area coincident with the September low and the 55-day SMA.

In the meantime, while above the 200-day SMA at 134.84, the prospects for the pair should remain constructive.

EUR/JPY daily chart