The USDJPY currency pair is testing the 61.8% Fibonacci retracement level, which is the very last support level that could fit within a potential wave 4 (blue) pattern. A bearish break indicates a bearish swing and a new wave pattern, whereas a bullish bounce could still lead to a bullish continuation within wave 5 (blue), if the price manages to break above the resistance trend line (red).
The USD/JPY is showing indecisive candlestick patterns at the 61.8% Fibonacci level. Corrective price action could however indicate a change in wave patterns, and could be a wave 4 (red), whereas bullish price action will need to break above the resistance trend line (red) to confirm a potential wave 4-5 (blue).
The USD/JPY currency pair is falling quickly which makes a wave 4 pattern less likely. The recent high is probably the end of the wave Y (pink) of the wave D (purple), but a break below the support trend line (blue) would confirm that.
