The USD/JPY bounced at the support zone with strong bullish momentum. Price also broke above the inner resistance trend line (dotted orange) which therefore makes a bullish wave pattern more likely. The last remaining obstacle remains the resistance trend line, which is marked as red on the chart. A bullish breakout could see price move higher towards the Fibonacci targets.
The USD/JPY failed to break below the support zone yesterday and made a bullish reversal instead. The current bullish momentum is strong and could be a wave 3 pattern.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.