USD/JPY rose to as high as 109.53 last week but formed a temporary top there on loss of momentum. Initial bias is neutral this week for consolidations. Downside of retreat should be contained by 107.77 resistance turned support to bring another rally. Break of 109.53 will resume the rise from 104.62 and target 61.8% retracement of 114.73 to 104.62 at 110.86 next.
In the bigger picture, break of 108.12 support turned resistance now suggests that corrective fall from 118.65 (2016 high) has completed with three waves down to 104.62. And, rise from 98.97 (2016 low) could be resuming. Focus is back on 114.73 resistance and break there will pave the way to 118.65 and above. This will now be the preferred case as long as USD/JPY stays above 55 day EMA (now at 107.60).
In the long term picture, the rise from 75.56 (2011 low) long term bottom to 125.85 top 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.
