the USD/JPY broke below the support trend line (dotted green) of the sideways zone. The bearish breakout is now moving quickly lower towards the Fibonacci retracement levels of wave 2 (purple).
The USD/JPY is building a WXY (pink) correction within wave 2 (purple). The Fibonacci retracement levels of wave 2 are expected to act as potential support and bouncing spots for a bullish reversal as long as price stays above the bottom (green line).
The USD/JPY seems to be building a bearish ABC (purple) zigzag within wave Y (pink). A bullish breakout above the resistance trend line (red) could indicate a deeper retracement within wave b (purple). The Fibonacci levels of wave B vs A are expected to act as resistance unless price manages to break above the higher trend line and 100% Fib level.
For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.
Good trading, Chris Svorcik Elite CurrenSea