The USD/JPY is approaching a key resistance trend line (red), which is a critical bounce or break zone. A bullish breakout above the trend line would invalidate the current expected bearish ABC pattern whereas a bounce could see price complete a wave X (pink) at a lower low.
The USD/JPY is also testing the 78.6% Fibonacci resistance level and the top of the bullish channel (orange), besides the resistance trend line (red). These factors make this price zone a key area.
