The USD/JPY is moving up again to challenge the 50-61.8% Fibonacci retracement levels, which remains a key decision zone for a bearish bounce or bullish breakout.
The USD/JPY bullish break above the Fibonacci levels could indicate a larger contracting triangle chart pattern whereas a bearish bounce could see the bearish wave C (pink) develop as indicated on the chart.
The USD/JPY broke above the resistance trend line (dotted orange) and could be building a wave C (blue) within a wave 4 (purple). The wave pattern is valid unless price manages to break above the 61.8% Fib, which indicates a potential triangle pattern. A bearish breakout below the support trend line (blue) confirms the end of the wave 4.