USDJPY is appeared to be in a large wave  corrective uptrend from its Nov’11 low at 75.40 which has the potential to test 87.00/93.00 area on multi month basis. Weekly oscillators have touched the overbought readings since 2005, which supports the medium term uptrend view. The short term pullback from 84.20 could be a wave 4. The potential support area for the pullback is at the 80.00/79.50 support. A close below 79.50 however suggests that a complex corrective wave is underway. A reversal above 81.80/84.20 would shift the focus on key swing high at 85.50.
The short term corrective downtrend has been trapped in a down trend channel. The pair is close to key support at 79.50 with potential bullish divergences in 4hr oscillators. The key near term resistance is at 80.65/80.85. A reversal above favour bulls to refocus on the 81.45/81.80 resistance initially. A break below 79.50 however signals a complex correction and targets 78.85/78.30 next. Traders may wait for the break of 80.65/ 80.85 for near term longs.
Anantharajan .P, CMT (Technical Strategist, Precise Trader)