USD/JPY fall from 76.02 resumed after brief consolidation and reached as high as 82.64. Initial bias remain son the upside this week for a test on 85.51 key resistance level. On the downside, break of 80.58 support is needed to signal short term topping. Otherwise, we'll stay bullish even in case of retreat.
In the bigger picture, the case of long term reversal continues to build up as USD/JPY is trading above the long term falling channel that started at 2007 high of 124.13. As noted before, bullish convergence condition is present in weekly MACD for some time already. Sustained trading above 79.52 at least confirmed that 75.65 is a medium term bottom. Further break of 85.51 will indicate trend reversal and target a test on 101.22 support turned resistance, which is close to 100 psychological level. Meanwhile, failure to sustain above 85.51 will bring sideway trading between 75.56/85.51 in medium term instead.
In the long term picture, 75.65 is starting to look like an important bottom in USD/JPY and stronger rebound is now in favor in medium term. However, we're anticipating strong resistance at around 100 psychological level to limit upside of the current rally from 75.56, at least in initial attempt. At this point, we're slightly favoring the case that USD/JPY is turning into a long term sideway pattern between 75/100.