USD/JPY edged higher to 134.04 last week but retreated again. Initial bias remains neutral this week first. On the upside, break of 134.04 will resume the rebound from 129.62 towards 137.90 resistance again. On the downside, break of 132.03 support will bring deeper fall to 130.62 support and then 129.62.
In the bigger picture, corrective pattern from 127.20 might be extending. But after all, down trend from 151.93 is expected to resume at a later stage. Break of 127.20 will resume this down trend and target 61.8% projection of 151.93 to 127.20 from 137.90 at 122.61. This will now be the favored case as long as 137.90 resistance holds.
In the long term picture, price action from 151.93 is seen as developing into a corrective pattern to up trend from 75.56 (2011 low). While deeper decline cannot be ruled out, downside should be contained by 38.2% retracement of 75.56 to 151.93 at 122.75.
