The USD/JPY is expecting to make a bullish reversal above the 100% Fibonacci level. This could confirm the completion of wave A (pink) and kick start a wave B retracement. If price action fails to bounce above the 100% Fibonacci level, then the wave E (purple) triangle pattern becomes invalidated (red x).
The USD/JPY is likely to create a wave 4 (green) pullback as long as price stays below the 50% Fibonacci retracement level. A break above the 50% Fib invalidates (red x) the wave 4 (green). A new lower low could be followed by a bullish bounce as price completes the wave A (pink).
