The USD/JPY failed to break above the 110 round resistance level but price is now approaching the key zone again. The bullish bounce in the channel keeps the uptrend channel intact. The bullish price action is probably part of a larger WXY (purple) correction within wave Y (pink).
The USD/JPY broke above the resistance trend line (dotted red) of the bull flag continuation chart pattern after bouncing at the support trend line which was probably a wave 4 (green) correction. The current bullish momentum could be a wave 5 (green) of wave C (blue) and aiming at the Fibonacci targets of wave C (blue). The wave C could also be a wave 3 if the bullish momentum is strong.
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