the USD/JPY is unable to break above the resistance trend lines (red) but did break below the support trend line (blue), which could indicate the end of wave 1 (purple) and the start of a bearish retracement within wave 2 (purple).
The USD/JPY usually retraces to a deep Fibonacci level such as the 61.8% or 78.6% when in potential wave 2 (purple). A break below the bottom and 100% Fibonacci level invalidates the expected wave 1-2 pattern (purple).
1 hourFibonacci level of wave 2 vs 1 (blue) at around 109.15. A bearish break below this support level however makes it more likely that price will make a bearish correction. A bullish bounce could still indicate a continuation within waves 5 of wave 1 (pink) if price manages to break above the resistance trend line.
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Good trading, Chris Svorcik Elite CurrenSea