The USDJPY bounced at the support trend line (green) of the bullish channel after a bearish bounce at the 88.6% Fibonacci resistance retracement level. The price however will need to break below the support trend line (green) before a reversal becomes more likely. A failure to break below the support could indicate an uptrend continuation, and an invalidation of the wave X (pink).
The USDJPY is probably in a wave 1-2 (blue) as long as the price stays below the 100% Fibonacci level. A bullish breakout above that level makes a wave X (pink) on the 4 hour chart less likely. A break below the support line (green) could make a wave 3 more likely.
The USDJPY is retesting a key resistance trend line (red). A bearish bounce could indicate a bearish continuation within wave E (light purple) whereas a bullish breakout could invalidate the wave E and expand the wave D (light purple).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.