? USD/JPY Builds Bull Flag Pattern in New Uptrend ?

Hi traders,

the USD/JPY went sideways after the bullish breakout above the resistance trend line (dotted red). Price could soon make one last retracement before an impulsive bullish push within potential wave 3 (pink).

USD/JPY

4 hour

The USD/JPY could start a large uptrend if indeed the wave 3 (pink) of wave 3 (purple) pattern takes place. For the moment price did bounce at the 78.6% Fibonacci retracement level of wave 2 vs 1. Price could still be a wave 1 (purple) at the moment unless price makes a deeper correction. A key support level to keep an eye on for a bullish reversal is the inverted head and shoulders pattern and level (green boxes).

1 hour

The USD/JPY could have a wave 5 (orange) of wave 5 (green) remaining before completing a potential wave 1 (blue/purple). A bullish breakout above the bull flag continuation chart pattern could confirm a move up towards the Fibonacci targets of wave 5. A bearish bounce however could indicate a deeper bearish retracement and the end of the wave 1 (blue/purple) at the most recent high.

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Good trading,
Chris Svorcik Elite CurrenSea

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