The USD/JPY is approaching a key resistance level (red) which offers a critical bounce or break spot. The news from the US regarding unemployment rates and non-farm payroll data (NFP) could fuel a larger move too.
A bullish breakout could indicate the end of the ABC (blue) zigzag pattern and start of larger move up within wave D (purple). A bearish bounce could indicate the continuation of the wave C (blue).
The USD/JPY is testing the bottom of the wave 1 which is indicated by the resistance trend line (red). A break above it could indicate a bullish breakout potential whereas a break below support (green) could see price move towards the Fib targets of wave C.
