The USD/JPY is testing a key resistance trend line, which is a decision zone for a bearish bounce or bullish break.
The USD/JPY bullish breakout is aiming for the Fibonacci retracement levels, which could start a reversal. A bearish breakout confirms the continuation of the wave E (light purple) and could fall towards the first Fib target at 110.
The USD/JPY could be building a wave 4 (blue) correction as long as price stays above the 61.8% Fibonacci retracement level. A bearish break below this level invalidates the wave 4 whereas a bullish breakout could confirm the wave 5 (blue) pattern.