the USD/JPY uptrend managed to break above the previous top (dotted red) and price is now building a consolidation zone. An uptrend continuation seems likely at the moment.
The USD/JPY break above the next resistance trend line (red) should spark a bullish continuation towards the Fibonacci targets of wave 3 vs 1 (pink). The main target at the moment is the 261.8% Fibonacci target at the round level of 110. The broken resistance at 108.50 should usually act as a potential support zone.
The USD/JPY seems to be building a bullish 5 wave (blue) pattern as long as price stays above the 50% Fibonacci retracement level. A choppy correction is typical for a wave 4 (blue) and the bullish breakout should send the pair higher. A break below the 50% Fib invalidates the current wave 4 pattern and could indicate a different wave structure, such as the end of the wave 3 (pink) at the recent top.
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Chris Svorcik Elite CurrenSea