USD/JPY traded lower on Wednesday, falling below the 111.65 (S1) line to hit support at the 111.00 (S2) barrier, marked by the low of the 11th of February. Thereafter, the rate rebounded and is now testing the 112.50 (R1) barrier. Although the short-term outlook is still cautiously negative, for now, I see signs that the current bounce may continue for a while. A clear move above 112.50 (R1) could set the stage for extensions towards the 113.40 (R2) hurdle. Further advances are also supported by our short-term oscillators. The RSI rebounded from its 30 line and is now testing the 50 barrier, while the MACD, although negative, has bottomed and crossed above its trigger line. As for the bigger picture, I still believe that the close below 116.00 has turned the longer-term outlook negative. I would treat the current recovery, or any extensions of it, as a corrective move for now.