The market was obviously long EUR/JPY and the renewed failure at 126.00 saw many of these longs starting to bail. Exporters selling USD/JPY, especially during the Tokyo morning, contributed to the strong JPY throughout the day. I would not read too much into any of these moves, simply that the market got too long too quickly and is now giving back some gains.
The crucial levels now are 120/126 in EUR/JPY and 92/102 in USD/JPY (roughly the breakup point and the major 61.8% respectively).
