The USD/JPY is showing strong bearish momentum, which makes it likely that price will reach the support trend line (blue). This support zone is a new bounce or break spot for the USD/JPY but eventually a bearish ABC (red) pattern is likely to occur. When price bounces, I will place the Fib on the price swing and keep an eye on the Fibonacci resistance levels for a bearish bounce.
The USD/JPY has been moving lower as part of a 5th wave pattern within wave A (red) after breaking multiple support trend lines (dotted green) and bouncing at the -27.2% Fib target (see 4 hr chart). Eventually price is expected to complete wave 5 (orange) of wave A (red) and start a potential wave B (red).
