Hi traders, the USD/JPY is yet again testing the previous bottom and its support zone (blue box), which is key decision zone for a bullish reversal (green arrows) or bearish breakout (orange arrow).
The bearish target is nearby and aims for the next Fibonacci level of wave Y vs W at 109. The bullish space is larger because price could be completing a WXY (pink) corrective pattern and the wave Y (pink) usually stops around the previous bottom of wave W.
The USD/JPY sideways pattern seems to be an ABC pattern (orange) within wave 4 (green) as long as price stays below the 61.8% Fibonacci level of wave 4 vs 3. A break below the support level could indicate a bearish continuation towards 109 whereas a break above the 61.8% Fibonacci might lead to move up towards the resistance trend line (red).
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Chris Svorcik Elite CurrenSea