The USD/JPY bullish bounce could indicate that a bearish wave A (purple) has been completed and that the price is ready to retrace within a wave B (purple). A bearish ABC (purple) could take the price down to the Fibonacci targets to complete a wave Y (pink), a wave E (purple), and of a wave B (red).
The USD/JPY has completed 5 bearish waves, which seems to be part of a wave A (purple). The price could now be building an ABC corrective pattern within wave B (purple). A bearish bounce at the Fibonacci retracement levels of wave B vs A could confirm a next bearish swing unless the price manages to break above the resistance trend line (red).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.