The USD/JPY bullish momentum is moving higher and is approaching the -27.2% Fibonacci target at 113.23. One more bullish push towards the Fib target is expected.
The USD/JPY uptrend is expected to complete wave D (purple) of a potential triangle pattern on the daily chart. A bearish turn at the Fib target could confirm a new wave E swing as long as price stays below 118.60, which is the invalidation level of the potential contacting triangle on the daily chart.
The USD/JPY broke the support trend line (dotted blue) which confirmed the end of wave 3 (green). The bearish pullback seems to be a wave 4 (green) because price bounced at a shallow 38.2% Fibonacci level and broke above the resistance trend line (dotted red), which signals a potential bullish breakout within wave 5 (green). The -27.2 and -61.8% Fibs are potential targets.
