A strong rally on USD/JPY last week above 106.00 suggests that market is in a bigger and more complex recovery which can be wave B of a higher degree as shown on a daily chart. If that’s the case then on the 4h chart leg up from August low is sub-wave C) that should reach much higher levels after a pullback down into a sub-wave four, which can be around the corner now since we can count five minor waves up in extended wave 3 near 161.8% Fib. resistance.
USD/JPY 4 Hour Chart
USD/JPY Daily Chart