The USD/JPY downtrend channel is now challenging two key support trend lines (blue). The support zone is a critical spot for a bullish bounce or bearish break. A bullish bounce could indicate a larger and expanded wave B, whereas a bearish break could confirm the continuation of a wave C (pink).
The USD/JPY needs to break below the support of the downtrend channel to confirm the potential waves 3, otherwise the bearish price action is looking quite choppy. Impulsive price action is needed to confirm the development of a wave 3.
Origin: Admiral Markets