The USD/JPY is facing a new resistance trend line (red) after breaking a minor trend line (dotted orange) yesterday. The bullish breakout did however indicate that a bearish ABC pattern (blue) was probably completed at the recent low, and that the price could be building a bullish wave C (purple) within a larger wave X (pink) correction.
The USD/JPY is attempting to break above the resistance trend line (red), which could also cause a retracement. The price remains in a bullish trend environment as long as the price stays above the support trend line (blue), whereas a bearish breakout could indicate the end of the wave 5 of wave C.
