the USD/JPY bullish channel is approaching the previous top, which is a key decision zone for a bullish breakout or bearish bounce. Will the bulls be able to keep control and push it towards the Fibonacci targets?
The USD/JPY is an uptrend and a bullish breakout above the previous top (red) is possible as long as price action stays within the bullish channel. In that case, price action is aiming for the Fibonacci targets such as the wave 3 vs 1 and 5 vs 1+3 levels.
The USD/JPY could be in a wave 3 but price action must break above the 108.50 level to clearly confirm momentum. Otherwise, if price fails to push higher, then a larger bearish correction could take place back to the previous tops (blue line) at around 108.20. A break below 108 indicates a potential reversal.
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Chris Svorcik Elite CurrenSea