4 hour
The USD/JPY failed yesterday to break the top resistance (red). Price is now building a potential pullback within wave 4 (orange) which could find support (green) at the previous bottom and tops.
The retracement is starting to resemble a bull flag chart pattern, which could offer a bullish continuation signal upon a bullish breakout.
1 hour
The potential USD/JPY retracement within wave 4 (orange) could also receive support from the Fibonacci levels of wave 4 vs 3. A bullish break could price start wave 5 (orange) whereas a break below the 61.8% Fib makes a wave 4 (orange) unlikely.
Origin: Admiral Markets
