USD/JPY formed a temporary low at 77.94 last week and recovered. Initial bias remains neutral this week and some more consolidation could be seen. Nonetheless, upside should be limited below 79.13 support turned resistance and bring fall resumption. Below 77.94 should send USD/JPY through 77.66 low to 75.56/76.02 support zone.

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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