The USD/JPY broke below the support trend line (dotted blue) but the breakout was short as price retraced back to the resistance trend line (red). Overall, price is in a bearish channel at the moment, which seems to be part of a larger bearish ABC (pink) pattern. A break below support confirms the potential wave C (pink) whereas a bullish breakout indicates a deeper wave B (pink).
The USD/JPY is showing corrective and choppy price action as it’s moving lower. This could either be multiple wave 1-2s (orange/green) if price breaks below the channel support (blue), or price is building a bullish correction as part of larger wave B (pink) if price breaks above the channel resistance (red).
