I have been bullish on the USD/JPY since it found support around 111.50 earlier in February. However, a month later, I could see that I was a bit ahead of myself. The USD/JPY retreated before tagging 115.00 and came back below 112. Still, the bullish outlook is still alive and a buy-on-the-dip strategy seems appropriate.USD/JPY Daily Chart 2/29(click to enlarge)Trend Has Turned Bullish and is Still Bullish:- The sharp rally towards the end of 2016 was an indication of bullish reversal.- The bearish price action in 2017 so far could be viewed as a bearish correction.- This means, the dominant trend is still bullish since late 2016. - We can justify this view because price is still above the 100-day and 200-day simple moving averages (SMAs).- Furthermore, the daily RSI pushed above 70, even 80. Since then, it stayed mostly above 40. This shows that there was very strong bullish momentum in 2016, and that the bearish price action in 2016 has not killed that prevailing bullish momentum.Trade Assessment:- Let's say we put in a buy order at 112.50 with a stop at 111.30. - This is a risk of 120 pips.- The first target could be 114.80, which would be the resistance of the current price range.- This target yields a potential gain of 230 pips.- The reward to risk profile is just under 2:1 - not bad.- Note that this bullish target does not require a bullish continuation scenario. - Price could still turn down from the 114.80 area in a sideways consolidation or even bearish correction scenario.- Now, if price breaks 115.00, we can expect some extension that might bring USD/JPY back to the highs above 118. - I think if a bullish trade starts to work out, we should indeed keep at least partial position after that 114.80-115.00 resistance area.