The USD/JPY broke the resistance trend line (dotted red) as expected in yesterday’s wave analysis. The bullish breakout is probably part of a larger bearish WXY (pink) correction, which could indicate a bearish bounce at the Fibonacci levels. The main target of the bearish correction is at the confluence of the 50% Fibonacci level, and the -27.2% Fib target, which could complete a wave E.
The USD/JPY seems to be completing an ABC zigzag pattern within wave X (pink). A break below the support trend line (blue) increases the chance that the wave C (purple) has been completed.
