USD/JPY dropped to as low as 78.18 last week and fall from 79.65 extended. Initial bias remains on the downside this week for 77.90 support. Break will suggest that whole decline from 84.17 is resuming. In such case, further fall should be seen through 77.66 towards 75.56/76.02 support zone. On the upside, above 78.84 will bring another recovery to extend the consolidation pattern fro 77.66. But upside should be limited below 79.65 resistance and bring downside breakout eventually.

In the bigger picture, firstly, there is no sign of trend 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 any case , 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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