The USD/JPY wave pattern remains in an indecisive zone as long as price fails to break below the support lines (blue). The tentative price action could also mean that price will expand the wave B (blue) with a new high first before continuing lower with the larger bearish wave C (blue). The key aspect remains whether price will break above resistance (red) or below support (blue).
The USD/JPY is building a bear flag continuation chart pattern. A break below the flag pattern confirms a downtrend resumption, which should aim for the Fibonacci target levels of wave C vs A and Y vs W. Till now this pair has been choppy and corrective which could either be explain by an ABC (orange) in wave 2 (green) or a potential reversal and deeper wave B (blue) retracement.
