The USDJPY still held critical support last week. There may be a bias among traders that we will see a big move down in USDJPY, but the break out has not yet occurred, and we are likely to see a bounce.
As the USD is weak as of late, we can take advantage of the yen bounce through EURJPY which remains in a bullish cycle, and looks to be in a bear flag for the last leg up within the wave cycle.
The wave count shown here suggests we are doing a double corrective in the second leg.
The safe way to play the setup is to wait for an upside break of the flag setup.
The wave count invalidation falls at a close below 130.051 lows.
The setup targets a high above 132.50 - likely the 61.8% Fib on the daily @ 135.35 however, targets can be reassessed as the wave progresses.
UPDATE: We have completed the first bullish wave up. So far the pair has retraced back to the 38.2% fib. It can retrace lower, but looking for the lows at 130.11 to hold and then a break above today's high to confirm the second leg. The second leg should break us out of the flag pattern which opens the upside.