The USD/JPY broke the resistance trend line (dotted red) and is now challenging the Fibonacci retracement levels of wave B (red). A break above the 100% Fibonacci level invalidates the potential bearish ABC (red) zigzag pattern whereas bearish price action at the Fib levels could confirm a wave B. A break below the support (blue) could also confirm the continuation of a wave C within wave E (light purple).
The USD/JPY is probably in a bullish wave C (orange). Price is now building a small triangle chart pattern at the 50% Fibonacci retracement level of wave B vs A. The breakout could indicate whether price is still in a bullish wave C or whether price will be building the start of a bearish wave C (red).
