Source: Admiral Markets MT5 with MT5SE Add-on USD/JPY motive wave
The USD/JPY broke the resistance trend line (dotted red) and is now challenging the Fibonacci retracement levels of wave B (red). A break above the 100% Fibonacci level invalidates the potential bearish ABC (red) zigzag pattern whereas bearish price action at the Fib levels could confirm a wave B. A break below the support (blue) could also confirm the continuation of a wave C within wave E (light purple).
The USD/JPY is probably in a bullish wave C (orange). Price is now building a small triangle chart pattern at the 50% Fibonacci retracement level of wave B vs A. The breakout could indicate whether price is still in a bullish wave C or whether price will be building the start of a bearish wave C (red).This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.