USD/JPY’s rally resumed last week by breaking 112.07 temporary top and hit as high as 112.24. Initial bias stays on the upside this week. Current up trend from 102.58 should target 61.8% projection of 102.58 to 111.65 from 109.11 at 114.71 next. On the downside, below 111.50 minor support will turn intraday bias neutral first. But near term outlook will stay bullish as long as 110.81 support holds.
In the bigger picture, corrective decline from 118.65 (2016 high) should have completed at 101.18 already. Rise from the 102.58 is seen as the third leg of the up trend from 101.18. Next target is 114.54 resistance and then 118.65 high. This will now be the preferred case as long as 108.71 support hold, even in case of pull back.
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 pattern 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.
