The USD/JPY made a bearish bounce at the deep 78.6% Fibonacci retracement level, which could confirm the expected wave B (pink) pattern. A bearish break below the support trend line (blue) would increase the chance of a bearish ABC (pink) within wave E (light purple).
The USD/JPY would invalidate the bearish wave pattern if it manages to break above the 100% Fibonacci retracement level and resistance trend lines. The main target of the potential bearish reversal is the -27.2% and -61.8% Fibonacci levels.
The USD/JPY seems to have completed 5 bullish waves (blue) within wave C (purple) but the main decisive factor depends on the breakout direction of the trend lines.
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