The USD/JPY bullish momentum has created a steep uptrend channel which almost reached the 261.8% Fibonacci target. A break below the channel could indicate a bearish retracement within the uptrend.
The USD/JPY seems to moving higher within a wave 3 (pink) impulse and one more push higher could see price hit the 261.8% Fibonacci target of wave 3 vs 1. A mild correction however could be expected completed as the price reaches a daily resistance zone (red box). The Fibonacci retracement levels of wave 4 vs 3 are expected to act as support and could become a bouncing spot for an uptrend continuation.
The USD/JPY uptrend is aiming for the Fibonacci targets of the wave 5 vs 1+3 but a break below the support trend line (blue) could indicate a bearish correction first. The main support zone for a trend continuation could be the 107.50 round level, after which the uptrend could aim for round levels such as 109 and 110.
The analysis has been done with the CAMMACD.MTF template.
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