The USD/JPY pair is moving within a long-term ascending channel: at the beginning of last month, against currency interventions by the Japanese government, the price tested its lower border around 156.25 (Murrey [0/8]). However, it failed to consolidate below it and resumed positive dynamics.

During the morning session, the USD/JPY pair is consolidating around the highs renewed at the beginning of the week, near 161.55. The “bullish” activity for the dollar remains moderate, while investors await new drivers for movement.

The probability of growth remains.

On the daily chart, a fifth wave of senior degree 5 is unfolding, encompassing the development of wave (3) of 5, while on the four-hour timeframe the third wave of junior degree 3 of (3) is forming. Wave i of 3 has already emerged, and the corrective phase has concluded as wave ii of 3; currently, wave iii of 3 is in progress. If this scenario proves correct, the USD/JPY pair’s upward trend is expected to continue toward the 163.00–165.00 zone, with a critical stop loss level at 160.10.

During the morning session, the USD/JPY pair is trading in a sideways trend at 160.28 against the negative dynamics of the American currency.

The USD/JPY pair is approaching 160.71 after the publication of strong US economic data. In May, the consumer price index grew by 0.5% MoM and by 4.2% YoY, and the core indicator increased by 0.2% and 2.9%, respectively.