The USD/JPY showed a bullish breakout yesterday above the resistance trend line (dotted orange) but price failed to break the channel resistance (red). The USD/JPY however could now be building a bearish pullback with the bullish trend as indicated by the blue lines. A new bullish breakout could indicate the possibility of a continuation towards the -27.2% Fib target.
The USD/JPY has probably completed a wave 3 (orange) and price is correcting within wave 4. This is valid as long as price stays above the 61.8% Fib otherwise a different wave pattern is taking place.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.