The USD/JPY is either building a large bull flag pattern for a bullish breakout or respecting the deep Fibonacci levels for a bearish reversal. The direction and next wave pattern will depend on the breakout direction above or below the trend lines.
The USD/JPY is likely to be completing a bearish ABC (pink) wave pattern if price is able to break below the support trend line. A break above the 100% Fibonacci level and trend line (orange) invalidates the bearish wave pattern and could indicate an uptrend.
The USD/JPY seems to be building a large contacting triangle pattern and price is now expected to build a final wave E (purple). The confirmation occurs upon the bearish breakout below the channel. In that case the likely reversal spot is the 61.8% Fibonacci retracement level.
The USD/JPY is building a triangle pattern but whether price will break the triangle to the downside or upside remains an open question. The breakout will be the main factor for determining the next direction.
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