The USD/JPY bounced at the support zone with strong bullish momentum. Price also broke above the inner resistance trend line (dotted orange) which therefore makes a bullish wave pattern more likely. The last remaining obstacle remains the resistance trend line, which is marked as red on the chart. A bullish breakout could see price move higher towards the Fibonacci targets.
The USD/JPY failed to break below the support zone yesterday and made a bullish reversal instead. The current bullish momentum is strong and could be a wave 3 pattern.
