USD/JPY

4 hour

The USD/JPY is in a mild bullish channel which is testing key Fibonacci resistance levels. These Fib levels are a key break or bounce spot: a bullish break makes a wave 4 unlikely whereas a bearish break could indicate a continuation of the downtrend. The bullish pressure could see price make one more higher high, which could see price challenge the key level at the 50% Fib.

1 hour

The USD/JPY seems to have built and completed a lengthy sideways consolidation within wave 4 (green). Price broke above the resistance trend line (dotted red) and is now challenging the previous high (orange). A bearish breakout could start a reversal but a bullish breakout could be limited due to other resistance levels nearby.