USD/JPY Price Analysis: Daily 38.2% correction before test of monthly resistance

• USD/JPY has melted below the monthly support area but has started to stall on US dollar strength. 
• An upside bias on the lower time frames would coincide with a restest of the monthly structure. 

The following is a top-down analysis that illustrates the market's structure and the probability of a bullish correction on the monthly and weekly charts following a downside correction on the daily chart.  

Monthly chart

While the price has penetrated below monthly support, the structure would now be expected to act as resistance on a re-test.

Weekly chart

The bullish weekly W-formation is a bottoming pattern.

The price could be set to close above the support structure and trendline resistance this week.

Daily chart

From a daily perspective, here we have an overextended W-formation within a weekly W-formation. 

Before extending higher, the price would be expected to correct back to towards the neckline of the weekly formation which meets with a daily 38.2% Fibonacci retracement level and prior resistance.