The USD/JPY could be building a bearish ABC (purple) pattern if price bounces and reverses at the 138.2% Fibonacci level. A break above this level, however, invalidates the current ABC pattern and makes it likely that the wave 2 (pink) has already been completed at the recent bottom (where wave A purple is now). A bullish breakout and continuation, either immediately or after a deeper retracement in wave 2, is likely to be an impulsive wave 3 (purple).
The USD/JPY could be building a bullish ABC (blue) pattern within the wave B (purple) but if this wave pattern becomes invalidated, then the bullish wave count becomes the main analysis with price building multiple 5 wave patterns. It is also important to keep an eye on the Fibonacci retracement levels of wave 4 vs 3 because if price reverses at these levels, then it could indicate a wave 4 (orange) and more expected upside.
