USD/JPY has been in a consolidation phase in 2017 after a bull run from just under 100.00 to above 118.00 in the 4th quarter of 2016. USD/JPY Daily Chart(click to enlarge)Overall Bullish Trend:- I am still convinced that USD/JPY is going to return to the dominant bullish trend. - I think the bull run at the end of 2016 established a bullish market.- The retreat from 118 has been choppy, which also suggests the dominant trend to be bullish.Shift in Consolidation Structure: - Price has retreated from around 118 to around 108 in a downwards channel.- The key is the lower high and lower low.- Then, we started to see price trade sideways and enter a triangle structure.- Essentially price has gone from bearish to sideways. The congestion (lower high and higher low) reflects the market being more tentative about direction.Anticipating a Breakout:- I think the congestion is setting up for a breakout.- The longer the USD/JPY trades sideways, the more violent the breakout should be.- As I mentioned before, I have a bullish bias and I think a breakout will push price back towards 118 in 2017. - If I am wrong, and price continues to slide, 105.60-106 will be the next key support/resistance pivot area where we should expect a rebound. Prevailing Trend:- The bullish outlook for the rest of 2017 going into 2018 would be in line with the prevailing secular uptrend since 2012. - We should note that after the 2015-2016 consolidation/correction, the RSI held above 40, which reflects maintenance of this long-term bullish momentum. USD/JPY Weekly Chart(click to enlarge)