USD/JPY: Wave 4 retracement / re-test of broken trendline

Up for a retracement I think...
Oversold and reaction at the top of the up channel with some fib confluence...

Structure of the retrecement we will have to see, 3 or 5 waves...
First move could be re-test of the broken trendline close to the 107 level...
Watch the MA's and the bottom of the up channel for possible reversal to continue the uptrend...

Short for now but the uptrend should continue afterwards since I don't think the bullish wave structure is complete yet...Breakout traders could trade the bullish breakout of the corrective pattern for a wave 5...

Range traders might get some good opportunities trading the internal wave structure of the retracement on lower TF's...

Comment:

So far no definitive confirmation. The uptrend is strong, today could turn out to be yet another green candle but the high is not taken out yet...

Now between the 0.618 and 0.786 of the down move from yesterday.
The current level (109.40) is a good short area though for short-term trading if within one's trading strategy, with SL above the high (and also above 110 I would say...) and targets 108 and 106.50...

Let's see if it takes out the high or not...

Trade active:

Short from 110.65 to possibly catch a retracement...
SL depends on your strategy but I would say to keep it at least above the 2.618 ext. which lies around 112.20...