the USD/JPY broke below the support (dotted blue) of the uptrend channel, which thereby ends the uptrend and indicates the start of potential larger bearish correction.
The previous USD/JPY wave outlook was invalidated with the bearish breakout. The wave pattern has therefore been changed and now the wave 1 (purple) has been placed on the most current top. The current pullback could be a wave 2 (purple) and price could fall towards the Fibonacci retracement levels of wave 2 vs 1.
The USD/JPY bearish breakout is showing strong impulsive price action. An extension of the momentum towards the Fibonacci targets of wave 3 vs 1 is possible. A light pullback could also take place before price continues lower within the wave C (pink) of the zigzag.
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Good trading, Chris Svorcik Elite CurrenSea