This week, the USD/JPY pair had ambiguous dynamics: quotes fell to the area of 153.60, but by now they have regained most of the lost positions.

The USD/JPY pair is developing the strong “bearish” impulse formed yesterday, holding around 153.82 and renewing the lows of May 6.

The American currency is losing ground in the USD/JPY pair during the Asian session, correcting after quite active growth in the short term, which led to the renewal of local highs from May 1. Investors closed some of their long positions the day before, trying to hedge risks ahead of the publication of US inflation statistics today at 14:30 (GMT+2).

Growth is possible.

On the daily chart, the third wave of the higher level (3) formed, a downward correction ended as the fourth wave (4), and the fifth wave (5) develops, within which the wave 3 of (5) forms. Now, a local correction has formed as the fourth wave of the lower level iv of 3, and the fifth wave v of 3 is developing. If the assumption is correct, the USD/JPY pair will grow to the area of 161.50–165.00. In this scenario, critical stop loss level is 151.73.

After a correction in late April and early May, the USD/JPY pair is regaining lost ground, trying to overcome 155.90.