USD/JPY stayed in tight range above 77.90 last week. As noted before, the corrective price actions so far indicates that it's merely in consolidation and the fall from 80.61 is not over yet. Initial bias remains neutral this week first. Break of 77.90 should send USD/JPY through 77.66 low to 75.56/76.02 support zone. Meanwhile, we'll stay bearish as long as 79.13 resistance holds even in case of another recovery.

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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