USD/JPY breached 114.69 resistance to 114.96 last week, but quickly retreated. Initial bias is mildly on the downside this week for 112.71 structural support. Firm break there will bring deeper correction bask towards 111.65 resistance turned support. On the upside, break of 114.96 is now needed to confirm up trend resumption. Otherwise, outlook will be neutral for more corrective trading first.
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 118.65 high. This will now be the preferred case as long as 111.65 resistance turned support holds, even in case of deep 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.
