The USD/JPY made a bearish bounce at the previous top and resistance trend line (red). Price is now challenging the support zone again which is a key bounce or break spot.
A bearish break below the support zone could see a bearish continuation towards the -27.2% Fibonacci target within a wave 5 (purple) of a wave A (pink). A bullish break however invalidates the wave 4 (purple) pattern and could indicate a bullish push towards the previous top.
The USD/JPY made a head and shoulders reversal chart pattern (purple boxes) at the resistance line (red) and then broke below the support trend line (dotted green). A bearish breakout could indicate a wave 3 (blue) and a breakout towards the -27.2% Fibonacci target. If price is indeed in a wave 3, then the bearish move could fall even further.
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