There's a bullish Wolfe Wave pattern in USD/JPY. The 61.8% Fibo level have acted as support, so the fifth wave of the pattern might have been in place. However, the price is under 1-3 Line in the Sweet Zone, so we should wait for the market fixating above 1-3 Line as confirmation for the bullish outlook. If this happens, there'll be more evidence that wave 6 is underway.
The main target for wave 6 is the 50% Fibo level at 109.51 near 1-4 Line. The subsequent pullback from these levels could be a starting point for another decline. Meanwhile, if the pair breaks the 61.8% level (105.83), the bullish scenario will be under pressure and we should wait for the price returning above 1-3 Line as a sign that bulls are coming back into the market.
The bottom line is that there's a bullish moment in USD/JPY. However, we should wait for the price fixating above 1-3 Line as confirmation that the bullish reverse is taking place.
