The USD/JPY is probably building a bearish ABC (red) pattern within wave E (purple). The support and resistance trend lines remain critical for any potential bullish or bearish breakout. Another key level is the previous top because a break above the 100% Fib level invalidates the ABC pattern (red). A bullish rebound is expected once price completes the wave E.
The USD/JPY seems to have completed bearish wave 1 (orange) and price is now building a retracement within wave 2 (orange). The wave 2 is invalidated if price breaks above the 100% Fibonacci level. Price could be starting a wave 3 if it manages to break below the support trend line (green).
