USD/JPY Daily Analysis
USD/JPY dips notably as a correction from 131.24 extends but stays well above 126.91 support. The near-term outlook remains bullish with further rally expected. On the upside, the break of 131.24 will resume the recent uptrend to a 261.8% projection of 109.11 to 116.34 from 114.40 at 133.26. However, considering the bearish divergence condition in 4-hour MACD, a break of 126.91 will confirm short-term topping and turn bias back to the downside for the 121.27/125.09 support zone.
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.