The USD/JPY pair is correcting in an upward trend around 163.55: against the recent growth of the American dollar, the price broke through the all-time high of 162.80 and reached 163.80 at the time of Friday’s market close.

The US dollar is showing mixed performance in the USD/JPY pair, consolidating near the 163.80 level and fresh record highs reached the previous day. The instrument remains influenced by the divergence in monetary policy paths between the US and Japan, as well as higher imported energy prices amid escalating geopolitical tensions in the Middle East.

During the morning session, the USD/JPY pair develops yesterday’s “bullish” momentum, renewing record highs and attempting to consolidate above 163.15, while market participants evaluate June data on Japan’s foreign trade dynamics.

The probability of growth remains.

On the daily chart, the fifth wave of the higher degree 5 is developing, within which wave (3) of 5 is forming. On the four-hour chart, the third wave of the lower degree 3 of (3) is developing: wave i of 3 has already formed, the correction as wave ii of 3 has been completed, and wave iii of 3 is currently forming. If this scenario proves correct, the USD/JPY pair’s upward trend is expected to continue toward the 165.00–167.59 zone, with a critical stop loss level at 161.57.