The USD/JPY has multiple strong resistance trend lines (red) above it and a push higher is likely to bounce at the Fibonacci retracement levels of wave B vs A. A break above the 100% Fib level of wave B vs A, however, invalidates (red x) the expected ABC (purple) zigzag correction and could indicate an expanded wave X (pink). A breakout below the support trend lines (blue)could trigger a decline within wave C (purple).
The USD/JPY seems to have completed multiple ABC corrections in recent history. The current wave B (purple) must test the previous top before it can be confirmed that the correction is an ABC flat. The alternative is a potential ABC zigzag. In any case, a bearish breakout (green check) is likely to create bearish pressure and send the USD/JPY lower.
