the USD/JPY made a strong bullish breakout above the resistance trend line (dotted orange). Therefore, the impulsive bullish price swing is probably a wave 3 pattern.
This article reviews the potential space for more upside. We also analyse the key chart and Elliott Wave patterns.
The USD/JPY seems to be completing a larger ABC (purple) zigzag within a triangle pattern on the weekly and monthly charts. The current bullish ABC pattern is probably part of a wave D (red).
Price action remains in bullish territory as long as it stays above the 21 ema support zone. A shallow pullback should see a bullish bounce (blue arrow). Here are some other variations:
On the 1 hour chart, price action seems to be in a wave 4 (light blue) on a lower degree. The price respected the 23.6% Fibonacci level. This means that an immediate bullish continuation (blue arrow) is possible.
A deeper pullback should see the 38.2% Fibonacci level act as support (green arrows). Only a break below the 50% Fibonacci retracement level places the uptrend in danger.
The main targets for upside are at 105, 105.50, 106, and 107.50.