The USD/JPY is in an uptrend channel and price has recently broken above the resistance trend line (dotted orange) but price is struggling to break above the previous top at 110. A bullish break above the previous high could indicate a continuation of the uptrend whereas a failure to break above the top and a break below the support trend line (blue) could be part of a larger ABC correction (blue). In that case, a reversal head and shoulders pattern could be taking place (purple boxes).
A bullish breakout above the 110 resistance level could indicate an extension of the wave W (pink) towards the 50% Fib at 111.50 whereas a bearish break aims at 108-107.50.Good trading,
