The USD/JPY made a bearish bounce at the 78.6% Fibonacci retracement level and failed to break above the resistance trend line (orange). The lack of a higher high or lower low indicates a potential triangle chart pattern.
The USD/JPY completed a bullish ABC zigzag wave pattern within wave C (purple) and could now be building bearish ABC zigzag within wave D (purple). This could complete a wave B (pink) of a larger bearish ABC (pink).
The USD/JPY seems to have completed a wave X (blue) of a larger bearish WXY (blue) correction. A break below the support trend line (blue) would confirm the end of the wave X and the start of a wave Y (blue). The main targets are the Fibonacci levels around 112.50-113.
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