The USD/JPY is facing a new resistance trend line (red) after breaking a minor trend line (dotted orange) yesterday. The bullish breakout did however indicate that a bearish ABC pattern (blue) was probably completed at the recent low, and that the price could be building a bullish wave C (purple) within a larger wave X (pink) correction.
The USD/JPY is attempting to break above the resistance trend line (red), which could also cause a retracement. The price remains in a bullish trend environment as long as the price stays above the support trend line (blue), whereas a bearish breakout could indicate the end of the wave 5 of wave C.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.