The USD/JPY pair is developing an upward trend in the short and medium term, updating record highs.

The USD/JPY pair is trading at 154.90, poised to extend gains and test the June 1990 high of 155.50 ahead of inflation data and the Bank of Japan meeting on Friday.

The USD/JPY pair is correcting within a sideways trend around 154.72 amid a slowdown in the growth of the American currency.

Growth is possible.

On the daily chart, the third wave of the higher level (3) formed, a downward correction ended as the fourth wave (4), and the fifth wave (5) develops, within which the wave 3 of (5) started. Now, the third wave of the lower level iii of 3 is developing, within which the wave (i) of iii has formed, a local correction has ended as the wave (ii) of iii, and the wave (iii) of iii is developing. If the assumption is correct, the USD/JPY pair will grow to the area of 157.00–161.50. In this scenario, critical stop loss level is 152.50.