The USD/JPY showed a bullish breakout yesterday above the resistance trend line (dotted orange) but price failed to break the channel resistance (red). The USD/JPY however could now be building a bearish pullback with the bullish trend as indicated by the blue lines. A new bullish breakout could indicate the possibility of a continuation towards the -27.2% Fib target.
The USD/JPY has probably completed a wave 3 (orange) and price is correcting within wave 4. This is valid as long as price stays above the 61.8% Fib otherwise a different wave pattern is taking place.
Origin: Admiral Markets