JP Morgan - "Medium-term technical view: The bearish action for JPY since November has confirmed a broad-based medium term shift. Importantly, the break of several critical levels against the USD and for the crosses argues for a continuation of this trend in the coming weeks. The highlight of the bearish framework is the extension above the 84.20/85.55 resistance zone (2012/2011 highs) for USD/JPY. The subsequent price action affirmed the medium term base breakout and renewed trending bias. In turn, the risks point to a test of the 94/95 target zone which is near the 2010 high, if not an extension into the 100 area and close to the 2009 peak. Similarly, EUR/JPY has potential to extend back to the critical 123 area and highs from 2011. Also, the break above the important 90 resistance area for AUD/JPY argues for a closer test of the 2008/2007 cycle highs.
Importantly, the short term setup can allow for some consolidation as the rally has extended into the next line of important targets. Moreover, short term momentum studies are overbought and bearishly diverging with the most recent highs. In this regard, the 90 resistance zone will be a key test as it represents the important downtrendline from the 1982 cycle peak as well as the 76.4% retracement from the 2010 high. Above should seek a test of the 92.25 broad, inverse head and shoulders target. The 86.50/85.75 retracements from the late-November low should now provide decent support as corrective pullbacks are buying opportunities. Note that a violation of the 84.20/00 area is necessary to reassert the bullish JPY bias."