the USD/JPY made a bearish bounce at the resistance trend line (red) before breaking for a new lower low. As long as price stays below the resistance trend line (red), the USD/JPY could be aiming for the -27.2% and -61.8% Fibonacci targets as the next goal.
The USD/JPY seems to be building a wave Y (pink) correction within the wave 2 (purple) pattern unless price is able to break above the key resistance level at 112.50. A bullish break above this level would invalidate the current wave outlook and make a new uptrend likely.
The USD/JPY bullish retracement seems to be a wave 4 (green) correction within a larger bearish wave 3 (blue) of wave C (purple). A break below the support trend line (blue) could confirm this wave outlook and a bearish continuation. However, the wave 4 (green) becomes invalidated if price breaks above the Fibonacci onacci levels of wave 4 vs 3 which are shown on the chart.