The USDJPY currency pair is making a small consolidation zone at the -100% Fibonacci target near 114, which is a new decision zone for a bullish breakout or a bearish bounce. The candlestick patterns will confirm the immediate direction, but ultimately, the trend remains bullish and the price could complete wave C (purple) of wave Y of D at higher Fib targets.
The USDJPY currency pair seems to have completed a wave 3 (green) due to the current consolidation zone or the bull flag chart pattern. A break below the support trend line (blue) could indicate a pullback to the Fibonacci retracement levels, whereas a bullish break above the resistance (red) might see the price move higher.
The USDJPY currency pair is showing a new higher high, but the bullish trend channel could still be part of a larger triangle (wave D purple), as long as the price remains below the 78.6% Fibonacci level at 115.95.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.