USD/JPY rebounded last week after support from near term rising trend line. The development suggests that pull back from 137.76 has completed. Initial bias is now back on the upside for retesting 137.76/90 resistance zone. Nevertheless, on the downside, break of 137.73 will resume the fall from1 37.76 through 133.00 instead.
In the bigger picture, price actions from 151.93 high are currently seen as a corrective pattern to the long term up trend. The first leg should have completed at 127.20. Rebound from there is seen as the second leg. Sustained break of 38.2% retracement of 151.93 to 127.20 at 136.34 will bring stronger rise to 61.8% retracement at 142.48. Meanwhile, break of 129.62 will argue that the third leg is starting through 127.20 low.
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.
