The USD/JPY bullish impulse is expected to complete a waveC (purple) within wave B (pink) after which price should move down lower again to complete wave C of wave E (light purple).
The USD/JPY strong bullish momentum is indicating a wave 3 (blue) pattern. The current pullback could therefore be a wave 4 (blue) unless price breaks below the 38.2% Fibonacciretracement level because wave 4 price usually does not enter the price territory of wave 1 (blue). In that case, price could test the support (blue) again and a break below it could indicate a downtrend. A bullish break above the resistance (red) trend line could indicate a bullish breakout.
