During the morning session, the USD/JPY pair retreats from the highs of April 30, holding near the psychological 160.00.

Against the strengthening American dollar, the USD/JPY pair is correcting in a sideways trend at 159.87, approaching the key level of 160.00.

During the Asian session, the USD/JPY pair is trading around 159.71: market participants are analysing mixed statistics, which increases uncertainty over the Bank of Japan’s next monetary policy steps, as disinflationary dynamics no longer appear as stable as previously assumed by experts.

The probability of a decrease remains.

On the daily timeframe, a fifth wave of the senior degree is unfolding, comprising the development of wave (3) of 5. On the 4-hour timeframe, the third wave of the junior degree within (3) is currently forming, with wave i of 3 already completed, alongside the emergence of a local corrective move as wave ii of 3. If this scenario proves correct, the downward trend of the USD/JPY pair is expected to continue toward the 157.12–156.63 area, with the critical stop loss level for this scenario at 159.27.