USD/JPY Builds Bearish ABC Pattern In Wave E Triangle

My FX Forum

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The USD/JPY currency pair made a new low yesterday, which is probably part of a bearish wave 5 (purple) of a larger wave A (pink). The main target of the 5th wave (purple) is the -27.2% Fibonacci level at 111.21. The bearish price action is probably part of an ABC zigzag pattern (pink) within wave E (purple).

The USD/JPY currency pair broke below the support trend line (dotted blue), but bullish candlestick patterns are probably indicating a retracement within the downtrend. A break above the resistance trend lines however, could indicate an uptrend.

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The USD/JPY currency pair has reached a potential support zone, which offers a potential breakout or bounce.