USD/JPY Price Analysis: Bulls stepping in below new monthly resistance

• USD/JPY comes with a bullish bias on the weekly and daily charts.
• A daily extension could be on the cards on a break of weekly resistance. 

Bulls are stepping back in at key confluence areas on the weekly, daily and 4-hour time frames.

The following is a top-down analysis that illustrates that a monthly bullish correction would equate to a daily continuation of the price recovery from the weekly demand zone.

Monthly chart

A restest of the broken support, aka, new resistance, could be on the cards.

Weekly chart

The bulls are chipping away at the weekly dynamic resistance, with price supported at the structure. 

A clean break from here would fulfil a daily price continuation. 

Daily chart

The market has completed a W-formation and a pullback to the 50% mean reversion of the bullish impulse. 

This is a bullish scenario and a continuation to the resistance area is highly probable. 

4-hour chart

The 4-hour time frame offers an interesting scenario.

Below the corrective lows would negate the bullish outlook and W-formation prospects. 

However, should the market hold at this juncture, having met a 50% mean reversion level, a bullish impulse would be the makings of a W-formation. 

A W-formation would penetrate the near-term resistance and on a pullback to the W-formation's neckline, or at least a 38.2% Fibo of the impulse, this is where a bullish opportunity would arise.

This will complete the next bullish impulse on the daily time frame.