The USD/JPY bullish momentum is challenging the previous resistance spot (orange line). A bullish breakout could see the price move up towards the Fibonacci levels, which could be a bearish bouncing spot if the wave X (pink) pattern plays out. A break below the support trend line (blue) could confirm the end of wave X and the continuation of the wave E (purple).
The USD/JPY seems to be building a bull flag chart pattern in a wave 4 correction (blue) as long as the price stays above the 50% Fibonacci retracement level. A break below the 50% Fib and support zones (blue line and purple box) could indicate the start of a larger bearish correction. A bullish break above the resistance (red and orange lines) could indicate a move up towards the Fibonacci targets.
