During the morning session, the USD/JPY pair is trading at 160.51, supported by the solid positions of the American dollar, remaining stable due to the interest rate differential, which could widen further as a result of the “hawkish” rhetoric of the US Fed.

During the morning session, the USD/JPY pair is renewing the highs of April 30 at 160.38.

The probability of a decrease remains.

On the daily chart, the fifth wave of a higher degree, wave 5, is unfolding, including the development of wave (3) of 5, while on the four-hour timeframe, the third wave of a lower degree, wave 3 of (3), is forming. Wave i of 3 has already been completed, and a corrective wave ii of 3 is currently developing. If this scenario proves correct, the downward trend of the USD/JPY pair is expected to continue toward the 157.71–157.10 area, with the critical stop loss level for this scenario at 160.42.

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.