USD/JPY dropped further to 104.18 last week but rebounded strongly just ahead of 100% projection of 111.71 to 105.98 from 109.85 at 104.12. Immediate focus is now on 106.07 support turned resistance this week. Sustained break there will suggest near term reversal and bring stronger rise to 108.16 resistance and above. Nevertheless, break of 104.18 will extend the whole decline from 111.71 instead.
In the bigger picture, USD/JPY is still staying in long term falling channel that started back in 118.65 (Dec. 2016). Hence, there is no clear indication of trend reversal yet. The down trend could still extend through 101.18 low. However, sustained break of 112.22 should confirm completion of the down trend and turn outlook bullish for 118.65 and above.
In the long term picture, the rise from 75.56 (2011 low) long term bottom to 125.85 (2015 high) is viewed as an impulsive move, no change in this view. Price actions from 125.85 are seen as a corrective move which could still extend. In case of deeper fall, downside should be contained by 61.8% retracement of 75.56 to 125.85 at 94.77. Up trend from 75.56 is expected to resume at a later stage for above 135.20/147.68 resistance zone.