the USD/JPY made a strong bullish bounce, which makes it likely that price completed a bearish price swing (wave c purple) at the recent low. Price however remains in a downtrend and could therefore be facing resistance at the Fibonacci retracement levels of wave X vs W.
The USD/JPY could make a bearish bounce at the Fibonacci resistance if the current WXY (pink) wave pattern is correct. The main target is the Fibonacci retracement level of wave 2 vs 1 (purple). A break above the resistance trend line (red) would make the current wave outlook less likely.
1 hourThe USD/JPY is building a bull flag chart pattern, which could be part of a wave 4 (blue). A bullish break above the resistance trend line (orange) could indicate one more push within a wave 5 (blue) of wave C (purple). Bearish candlestick patterns below the resistance trend line (red) could confirm a bearish reversal.
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Good trading, Chris Svorcik Elite CurrenSea