the USD/JPY made a strong bullish reversal after completing a 5th wave (blue) at the support zone (blue). What is next for this pair?
4 hour chart
The USD/JPY bullish reversal is probably indicating the end of the wave B (pink) and the start of a wave C (pink) within a larger bullish ABC zigzag (pink). Price is therefore expected to break above the resistance zone (red), although it could build a chart pattern (orange sideways arrow) before breaking higher. The break confirms (green check) the bullish outlook.
1 hour chart
The USD/JPY break and bounce could confirm (green checks) the bullish wave pattern. The current push up seems to be a wave 3 (purple) and price action is aiming for the Fibonacci targets. A light pullback would fit within a wave 4 pattern.
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This article was originally posted on FX Empire
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