The USD/JPY broke above the resistance trend lines (dotted red) and could be building a bullish continuation within the wave 3 (light purple) pattern. To confirm a potential wave 3, however, price would need to break above the next trend line and start moving quickly towards the 100% Fibonacci level of wave 3 vs 1.
USD/JPY
4 hour
The USD/JPY bearish break below the support trend line (blue) invalidates the current wave pattern and could indicate a completion of the larger wave 1 (light purple) at the recent high.
1 hour
The USD/JPY is building an impulsuve breakout above the resistance trend lines (dotted) which could indicate a wave 3 (blue) pattern. An immediate bullish continuation could see price move towards the 261.8% Fibonacci target of wave 3 vs 1 whereas a retracement could see price test the Fibonacci levels of wave 4 vs 3 (blue). A bullish bounce could see price move up as part of a wave 5 (purple) in wave 3 (pink).
The analysis has been done with the CAMMACD.MTF template.
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