In the previous analysis, USD/JPY: Something for both the bears and the bulls, the structure has been identified on both the weekly and daily time frames, with a bias to the downside and 105.95.
The price has indeed respected both structures and the downside target has been reached:
(Prior analysis, marking out the structures)
It would be textbook stuff should the price simply pick up all of the liquidity at this confluence juncture of the 61.8% Fibonacci retracement level and simply continue in its upside trajectory, extending the late July reversal.
From a COT perspective, it would also mirror the reduction of net JPY longs.
However, there are no indications, yet, from the longer-term nor lower time frames that the pair is set on such a trajectory.
While the price is below the red weekly resistance line, there can be no bullish bias and the symmetrical triangle suggests the breakout can go either way.
There is nothing bullish on the four-hour time frame yet, not while MACD is below zero and price below key resistances.
Price can easily retrace to the first resistance line in a correction prior to starting a fresh four-hour bearish impulse.
However, on a break of the resistances, with MACD turning bullish, the bulls will be back in charge seeking to extend the late July trend on the higher time frames on a break of the weekly 106.70 resistance.