The USD/JPYmade a strong bullish bounce but a new bearish breakout could see price fall towards the Fibonacci targets to complete the wave E (purple) of the triangle chart pattern on the daily chart.
The USD/JPY is still probably buildingan ABC (purple) zigzag pattern within wave Y (pink). The confirmation of this wave pattern occurs when price is able to break below the support trend line (blue). A break above the resistance trend lines (orange/red) indicates a change of wave patterns.
The USD/JPY is probably in a wave 4 (blue) retracement, unless price breaks above the resistance trend line (orange).A break below support (blue) could indicate a bearish breakout towards the Fib targets. The S&R lines of the triangle pattern seem to be critical for the next direction.
