The current structure suggests that USDJPY is forming a bullish 5-wave impulse consisting of primary sub-waves ①-②-③-④ and ⑤.
The last primary wave of this upside pattern requires the successful formation of intermediate wave (5). With intermediate wave (4) ending as a running flat, we now have a good opportunity to use the Fibonacci retracement to identify potential targets.
That being said, wave (5) could extend near 110.2, the 161.8% retracement of minor wave A (Minor 5 to Minor A). The completion of the bullish structure at this level is also in confluence with the 341.4% Fibonacci extension of intermediate waves (1) and (2).
A closer look at the chart shows that we are in the midst of impulse minor wave 3, which is part of intermediate wave (5).
Wave 3 could end shortly around the strong 110 psychological level, or perhaps a little lower. This could cause a short-term correction which is likely to last longer than the correction in minor wave 2. Should that be the case, the decline could be limited to the 33%-66% retracement zone.
A continuation breakout above minor 3 high would validate the completion of primary the current bullish formation.