The USD/JPY is in a tough spot and is squeezed between the bearish bounce at the Fib resistance and the strong support zone around 104.50-105. For the moment, a lower low seems likely to test the support (green) zone. A bearish breakout would invalid the wave 2 (purple) whereas a bullish bounce at the zone could still make the current wave 2 possible.
The USD/JPY could be building a 5 wave (orange) pattern. A break below the support (blue) could indicate a move lower whereas a break above the resistance (orange/red) could offer a bullish breakout towards the 50% Fibonacci retracement level of wave 4 vs 3.
