USD/JPY edged higher to 131.34 last week but reversed from there and dropped to 127.51. But as a temporary low is formed, initial bias is neutral this week first. Price actions from 131.34 are seen as correcting the whole rally from 114.40. Hence, rise will stay on the downside as long as 131.34 holds. Below 127.51 will target 125.09 cluster support (38.2% retracement of 114.40 to 131.34 at 124.86).
In the bigger picture, current rally is seen as part of the long term up trend form 75.56 (2011 low). Sustained trading above 61.8% projection of 75.56 (2011 low) to 125.85 (2015 high) from 98.97 at 130.04 will pave the way to 100% projection at 149.26, which is close to 147.68 (1998 high). For now, this will remain the favored case as long as 121.27 support holds.
In the long term picture, the up trend from 75.56 (2011 low) long term bottom to 125.85 (2015 high) has just resumed. First target at 61.8% projection of 75.56 to 125.85 from 98.97 at 130.04 was already met. Next is 100% projection at 149.26, which is close to 147.68 (1998 high).
