USD/JPY has been bearish until it hit a low of 98.85 in June. But even though it went into a mode of consolidation, there was still bearish bias - namely, the key highs were still getting lower. But as we can see in the daily chart, USD/JPY has broken above a key pivot around 104 and thus broke the pattern of lower highs. Now, USD/JPY has officially gone from bearish to neutral from the technical picture in the daily chart. USD/JPY Daily Chart 10/13(click to enlarge)What does this mean?- There is a stronger case for a bullish reversal scenario.- Traders should have more confidence towards the buy on a dip strategy. - Traders shorting USD/JPY should temper with the bearish outlook, and not rely it to come back to 100.00 again. - In fact, I would start looking at the 101-101.75 area as key support. The current rally:- The current rally that started in September is still in play and has upside risk towards the 105.50 area.- At 105.50 USD/JPY will meet a previous support pivot and a falling trendline.