The pair may grow.

On the 4-hour chart, the first wave i of 1 develops within the started wave (C) of the higher level. Now, the third wave of the lower level (iii) of i of 1 is developing. If the assumption is correct, the pair will grow to the levels of 109.35–112.32. In this scenario, critical stop loss level is 107.44.

On the 4-hour chart, the pair is trading in the upper Bollinger band. The price remains above its moving averages that are directed up. The RSI has formed a Bearish divergence with the price. The Composite is showing similar dynamics.

The US dollar closed last week with a fairly steady growth against the Japanese yen, updating local highs of August 1. "Bullish" activity remains on Monday, but the instrument showed a significant gap down at the opening and is now forced to recoup to its previous local highs. The US dollar is in demand amid improved prospects for US-Chinese trade negotiations, after the parties made mutual concessions, and Donald Trump announced the possibility of concluding an interim agreement.

At the end of August, the USD/JPY pair tested the local minimum at 104.70, reversed and began to grow. Subsequently, the instrument moved to wide sideways consolidation, and then changed the direction of the trend. Over the past two trading weeks, the price has risen by more than 200 points and reached an important resistance level of 107.70.

The USD/JPY pair is trading near the resistance level of 107.21. In case of breakdown, the next target will be the level of 107.88.