USD/JPY dropped notably last week after failing to break through 112.22 resistance. But for now, such decline is seen as a corrective move. Further rally is still in favor as long as 106.75 support holds. Decisive break of 112.22 carry larger bullish implication and target 114.54 resistance next. On the downside, break of 106.75 support will turn bias back to the downside for retesting 101.18 low instead.
In the bigger picture, at this point, whole decline from 118.65 (Dec 2016) continues to display a corrective look, with well channeling. There is no clear sign of completion yet. Break of 101.18 will target 98.97 (2016 low). Meanwhile, sustained break of 112.22 should confirm completion of the decline and turn outlook bullish for 118.65 and above.
In the long term picture, the rise from 75.56 (2011 low) long term bottom to 125.85 (2015 high) is viewed as an impulsive move, no change in this view. Price actions from 125.85 are seen as a corrective move which could still extend. In case of deeper fall, downside should be contained by 61.8% retracement of 75.56 to 125.85 at 94.77. Up trend from 75.56 is expected to resume at a later stage for above 135.20/147.68 resistance zone.