USD/JPY Uptrend Channel Ready To Challenge Wave 4 Fibs

USD/JPY

4 hour

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The USD/JPY bullish breakout above the resistance trend line has sparked a continuation of the uptrend within the bullish trend channel. The USD/JPY seems to be building a bigger bullish ABC pattern (purple). Price could be in a wave 3 if price manages to break above the top of the channel. Otherwise an alternative wave pattern is offered on the 1-hour chart.

1 hour

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The USD/JPY is continuing in the steeper bullish channel (green) after a breakout above the triangle chart pattern. The bullish price action could also be part of wave 5 (orange) rather than a wave 3 if price respects the -27.2% Fib target. In that case a minor wave 4 (dark red) is likely to develop. Price could bounce at the support levels (blue) if the wave 4 patterns indeed takes place.