the USD/JPY finally made a bullish continuation towards the next round level target at 112.50 but the breakout candle failed to close above the previous top (red). What is next for the USD/JPY?
The USD/JPY will need to re-break above the 112-112.25 resistance zone before a bullish continuation is likely. The next target could be the Fibonacci levels of wave X vs W. If price manages to break below the support trend line (blue), then the uptrend could be over and a larger bearish retracement would be the most likely scenario.
The USD/JPY bullish breakout made a strong bounce at the resistance trend line (red) near 112.50. The direction of the next price swing will depend on the next breakout: will price be able to break again above the 100% Fibonacci level or will it break below the support trend line (blue)?