the USD/JPY is building a bullish correction and moved slightly lower after the weak NFP results in the US on Friday. The bearish reaction however was relatively weak when compared to the EUR/USD and GBP/USD so a larger bullish correction (green arrow) is possible if price breaks above the resistance trend line (red).
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The USD/JPY is expected to make a bearish ABC (blue) correction and the current wave pattern outlook suggests that price has either started the wave C (blue) or is still in the wave B (blue). The main factor to keep an eye on is the support trend line (blue) and whether price will make a bullish bounce or bearish breakout.
The USD/JPY could have completed a bullish ABC (green) pattern within the wave B (blue), unless price breaks above the resistance trend lines (orange/red). A confirmation of the downtrend occurs if price is able to push below the support trend lines (blue). Price could aim for the Fibonacci targets of wave C vs A.
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Chris Svorcik Elite CurrenSea