USDJPY is in down trend. The rebound from 104.98 is treated as correction to down trend. Initial resistance is at 106.77. As long as this resistance holds, deeper decline is possible after correction. A break below 104.98 will indicate that the correction has completed and deeper decline towards 104.00 is expected to follow.
http://blog.forexcycle.com/887/daily...s-july-3-2008/