The pair is trading with a moderate decline amid frankly negative statistics from the US.

The pair may grow.

On the H4 chart, the ascending wave C of the higher level is developing, as part of which the first wave 1 of (1) of C has formed and the development of correction as wave 2 of (1) is completed. At the moment, the formation of wave 3 of (1) has begun, as part of which the first entry wave of the lower level i of 3 has formed and the local correction ii of 3 has completed. If the assumption is right, the growth of the pair will continue to the levels of 109.51–111.80. The level of 106.77 is critical and stop-loss for this scenario.

Yesterday, the USD/JPY pair received an impetus for growth amid the publication of positive statistics from the United States. New Home Sales for April increased by 0.6%, while experts predicted a decrease of 21.9%.

Today, during the Asian session, the USD/JPY pair is growing, developing a poor uptrend in the short term. Now, the instrument is testing the level of 108.00 for a breakout, adding about 0.19%. Despite the corrective sentiment on the US dollar, it moves quite confident against the Japanese yen.

On the 4-hour chart, a sideways trend is forming. The instrument is trading within a narrow corridor formed by the boundaries of Bollinger bands, the indicator cloud is narrowed, sideways movement is likely to remain in the short term. The MACD histogram is in the positive zone, while keeping minimal volumes, the signal line is directed horizontally, without forming a clear signal to enter the market. Stochastic is in the neutral zone, the oscillator lines are pointing upwards, a buy signal is saved.