The USD/JPY bounced at the resistance trend line, but remains in the bullish channel. A break above the resistance could indicate a breakout towards the next 78.6% Fibonacci retracement level, whereas a break below the channel indicates a potential move down to the next support (blue) trend line. The price could be building a bullish wave C (purple) within a larger wave X (pink) correction.
The USD/JPY seems to have completed a 5th wave (blue) at the resistance, although a bullish breakout could extend the wave 5. A bearish breakout could start the wave Y (pink) of the 4 hour chart.
