Hi traders, the USD/JPY uptrend continues after breaking above the key resistance trend line (dotted red), which seems to be confirming the impulsive wave 3 pattern.
The USD/JPY remains bullish as long as price stays above the support trend line (blue) of the uptrend channel. A bullish breakout could confirm the wave 3 (purple) within the wave 3 (pink) and move towards the Fibonacci target of the wave 3 vs 1.
The USD/JPY seems to have completed a bearish ABC (green) zigzag pattern within the wave 4 pattern (blue). The Fibonacci levels of wave 4 vs 3 could act as support and potential bouncing spots for an uptrend continuation. A break below the 50% Fib invalidates the current wave 3-4 (blue) as price enters below the top of wave 1 (blue), which could indicate a bearish reversal or a deeper retracement.