USD/JPY rebounded strongly last week and initial bias stays on the upside this week. Decisive break of 131.34 resistance will confirm larger up trend resumption. Next target is 61.8% projection of 114.40 to 131.34 from 126.35 at 136.81. On the downside, below 129.50 minor support will delay the bullish case and turn intraday bias neutral first.
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 126.35 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).
