USD/JPY Is At A Strong Crossroads

From 11th August 2017 to 21st August 2017 the pair has reached the zone around 108.60 – 108.90 three times without being able to break out below it.

What else can be seen on the charts:

From 114.494 (11th July 2017) to 108.906 (11th August 2017) the pair has formed a wedge, within which it has formed two triads of waves and on 11th August 2017 it reached the above-mentioned support zone.

The breakouts above the resistance trend line of the wedge began much earlier, around 110.85 (4th August 2017), after which the pair developed within a wide range and started attempting to breakout the strong support zone.

The conclusions:

In case there is a fourth attempt to break out below the support zone the possible target to the downside will be around 107.30 – 107.00, which is the diagonal trend line in red, which from a resistance has become a support.

In case that there is no breakout I think there will be a strong rally to the upside and the possible target will be around 120 -122.