4 hour
The USD/JPY made a bearish breakout below 108.50 which makes it more likely that price is in a wave B (green). A wave 3 (orange) bearish momentum seems to be taking place as price reaches the 161.8% Fibonacci target.
Once the wave 3 has been completed and the potential wave 4 starts, price cannot retrace above the bottom of wave 1 (red line) without invalidating it.
1 hour
The USD/JPY broke the bear flag (dotted green) chart pattern and seems to be building a wave 5 (purple) within wave 3 (orange).
