the USD/JPY is retesting the 38.2% Fibonacci retracement level for the third time. A bearish bounce seems likely as long as the price stays below 107.50.
The USD/JPY could break the resistance trend line (red) but then a bearish bounce and potential reversal could take place at the 50% Fibonacci level of wave 4 vs 3. If price however breaks above the 61.8% Fib then a larger bullish reversal is likely taking place.
The USD/JPY bounce at the 38.2% or 50% Fibonacci retracement level of wave 4 vs 3 could confirm the wave 4 (green) pattern. A bearish bounce is likely to aim for the support zone (green), which is a key and critical decision zone for the current wave 2 (purple). A break below the support zone (green) could indicate a larger bearish trend.
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Chris Svorcik Elite CurrenSea