the USD/JPY uptrend channel is testing the Fibonacci levels of wave X vs W (pink), which is a key decision zone for a bearish reversal or bullish breakout.
The USD/JPY is expected to make a bearish reversal if the current wave outlook is correct. A break above the resistance trend line (red) and the 138.2% Fibonacci retracement level invalidates (red x) the wave X (pink) pattern and indicates a new uptrend. A break below the support trend lines (blue) confirms (green check) a downtrend and a deeper retracement within wave 2 (light purple) towards the Fibonacci levels of wave 2 vs 1.
The USD/JPY is building an uptrend channel and the current consolidation zone has built a lower high. If price manages to break above the resistance (red), then the current wave 1-2 (blue) reversal is invalidated (red x) although the larger bearish WXY (pink) correction remains possible. A break below support (blue) could confirm (green check) the wave 123 (blue) pattern and a move towards the Fibonacci levels of wave 3 vs 1 (blue).
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