the USD/JPY is showing bearish price action at the moment but if the wave patterns are correct, then a larger bullish cycle could start soon if the pullback is indeed a wave 2 (pink) pattern.
The USD/JPY seems to be building a deep bearish ABC zigzag (purple) correction within the wave 2 (pink). This wave outlook remains valid as long as price stays above the 100% Fibonacci retracement level of wave 2 vs 1. A break above the resistance trend lines (red) could confirm a larger bullish breakout and continuation towards wave 3 (purple).
The USD/JPY bullish price action could either be the start of a larger bullish reversal or a small pullback (wave 4 blue) as part of a wave C (purple). The decisive factor is the price action at the previous bottom (orange line) of wave 1 (blue): a bullish breakout could indicate a reversal and new uptrend whereas a bounce and continuation lower favors the wave 5 (blue) of wave C (purple).