the USD/JPY made a bullish bounce at the broken resistance zone, which now is acting as support (blue box). The USD/JPY is now awaiting a bullish breakout to confirm the uptrend.
The USD/JPY bullish continuation is aiming for the Fibonacci targets of wave 3 vs 1 if the price is able to break above the resistance trend line (red). An unexpected break below the support (blue box and blue line) indicates an invalidation (red x) of the current wave 4 (purple) pattern.
The USD/JPY seems to have completed a bearish ABC (blue) correction within wave 4 (purple). The current bullish bounce could be a wave 1-2 (blue) as long as price stays above the 100% Fibonacci level of wave 2 vs 1. A break above the resistance trend line (red) confirms the uptrend continuation.
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