The USD/JPY bullish momentum is challenging the previous resistance spot (orange line). A bullish breakout could see the price move up towards the Fibonacci levels, which could be a bearish bouncing spot if the wave X (pink) pattern plays out. A break below the support trend line (blue) could confirm the end of wave X and the continuation of the wave E (purple).
The USD/JPY seems to be building a bull flag chart pattern in a wave 4 correction (blue) as long as the price stays above the 50% Fibonacci retracement level. A break below the 50% Fib and support zones (blue line and purple box) could indicate the start of a larger bearish correction. A bullish break above the resistance (red and orange lines) could indicate a move up towards the Fibonacci targets.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.