The USD/JPY bounced and reversed at the bottom of the uptrend channel as expected. Price is now ready to challenge and test the previous top.
The USD/JPY seems to be building a bullish channel within a wave C. A break above the previous top could see price move higher towards the -27.2% Fibonacci target.
The USD/JPY broke above the resistance trend line (dotted red) after bouncing at the Fibonacci levels of wave 4. Price could now be moving higher as part of a wave 5, which could become extended if price manages to break above the resistance trend line (orange) of the uptrend channel.
