USD/JPY Daily Analysis
The immediate focus is now on 129.77 resistance in USD/JPY. Break there should confirm that pull back from 131.34 has been completed at 126.35. A larger uptrend should be resuming. A further break of 131.34 high will confirm this bullish case. Meanwhile, even if the correction from 131.34 is to extend, the downside should be contained by 125.09 cluster support (38.2% retracement of 114.40 to 131.34 at 124.86) to bring a rebound.
In the bigger picture, the current rally is seen as part of the long-term uptrend from 75.56 (2011 low). Sustained trading above 61.8% projection of 75.56 (2011 low) to 125.85 (2015 high) from 98.97 at 130.04 will pave the way to 100% projection at 149.26, which is close to 147.68 (1998 high). For now, this will remain the favored case as long as 121.27 support holds.