the USD/JPY is approaching a key resistance trend line (red) and 78.6% Fibonacci retracement level of wave X vs W (pink). A bearish bounce would confirm the potential end of the ABC (purple) zigzag pattern.
The USD/JPY break above the previous top and the 100% Fibonacci level of wave X vs W makes a potential uptrend more likely. Otherwise the wave patterns are suggesting a bearish reversal within the wave Y (pink) of wave 2 (purple).
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