USD/JPY dropped sharply to as low as 88.97 last week before turning sideway. With 90.92 minor resistance intact, initial bias remains on the downside for 88.13/25 key support zone first. On the upside, above 90.92 minor resistance will argue that fall from 93.62 is completed and will flip intraday bias back to the upside for this resistance.
In the bigger picture, considering that USD/JPY failed to sustained above 55 weeks EMA and dropped sharply, we're now slightly favoring the case that down trend from 124.13 is not over. Break of 88.13 support will indicate that rebound from 84.81 has completed with three waves up to 94.97 already. The corrective structure will affirm the bearish case and pave the way to a new low below 84.81. On the upside, however, 94.97 will revive the case that 84.81 is already the long term bottom and will target 101.43/65 medium term resistance zone for confirming this bullish case.
In the long term picture, downside momentum is clearly diminishing with monthly MACD staying above signal line and bullish convergence condition in weekly MACD. However, the reversal scenario is not confirmed by break of 101.43/65 medium term resistance zone yet. We'll stay neutral first.