Against the positive macroeconomic statistics from Japan, the USD/JPY pair moderately declines, trading around the level of 109.53.

USD declines against JPY in trading in Asia, correcting after an unsuccessful growth attempt the day before, when the published minutes of the US Federal Reserve triggered a short-term momentum to buy USD. The regulator again took a wait-and-see attitude; however, investors were optimistic about the statement of representatives of the Fed that the US economy has made progress toward the goals, the achievement of which would allow starting the reduction of the quantitative easing program.

The pair may fall.

On the daily chart, the first wave of the higher level (1) of C develops, within which the third wave 3 of (1) forms. Now, the first wave of the lower level i of 3 has formed, and a downward correction is developing as the second wave ii of 3, within which the wave (а) of ii has formed. If the assumption is correct, after the end of the wave (b) of ii the pair will fall to the levels of 108.17–107.09. In this scenario, critical stop loss level is 111.64.

The USD/JPY pair has ambiguous dynamics this week. At first, it approached 109.05 but then regained losses and reached the Bollinger bands’ midline at 110.40.

After a technical correction to the 61.8% Fibonacci level, the USD/JPY pair is strengthening again, preparing to renew the July high in the long term.