USD/JPY continued to stay in tight range last week and more sideway trading could be seen in near term. However, note that the corrective structure of price actions from 79.13 argues that fall from 80.61 is not finished. A break below 79.13 will likely send USD/JPY through 78.60 support. Also, such development will in turn argue that fall from 84.17 is resuming. On the upside, though, break of 80.61 will bring stronger rebound to 61.8% retracement of 84.17 to 77.66 at 81.68 and above.

In the bigger picture, firstly, there is no sign of reversal in USD/JPY yet and the larger down trend from 124.13 is still expected to continue. Nonetheless, consolidation pattern from 75.56 should extend for a while below 85.51 first. In anyway, we'd stay bearish as long as 85.51 resistance holds and expect an eventual downside breakout.

In the long term picture, with 85.51 resistance intact, there is no scope for trend reversal yet. Though, some more consolidative trading would be seen in medium term above 75.56 first before the long term down trend from 124.13 eventually resumes to 70 psychological level.

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