The USD/JPY is building a retracement after the breakout. A continuation above the minor resistance trend line (red) could confirm (green check) the wave 3 (purple) pattern and indicate a push higher towards the Fibonacci targets. A rebreak below the broken resistance (dotted red) invalidates (red x) the wave outlook.
The USD/JPY bullish bounce at the Fibonacci retracement levels of wave 4 vs 3 and breakout above the resistance trend line (red) could confirm (green check) the wave 4 (green) retracement and wave 3 (purple) momentum. A break, however, below the 61.8% Fibonacci retracement level invalidates (red x) this wave outlook.
