USD/JPY Massive Bullish Momentum after Expected Bullish Breakout

Forex Trader, Analyst, Educator • Jul 12, 2018 at 5:45 AM EDT

The USD/JPY broke above the next major resistance trend line as well with strong bullish momentum.

USD/JPY

4 hour

The USD/JPY broke above the next major resistance trend line (dotted red) as well with strong bullish momentum. The impulsive price action could indicate a larger push higher towards the -27.2% Fibonacci target at 113.20. Any pullback is likely to be a retracement which is followed by a bullish continuation.

1 hour

The USD/JPY bullish breakout is probably a wave 3 (green). The strong momentum seems to be causing an extended 5 waves within wave 3 (green). A bearish pullback is probably part of a wave 4.

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