The price is in correction and could decline.

On the daily chart, the fifth wave of a higher degree 5 is developing, within which the first wave of a lower degree (1) of 5 has formed, and a correction as the second wave (2) of 5 is forming. Currently, wave A of (2) is forming, within which the third wave of a lower degree iii of A has finished, and the correction as the fourth wave iv of A is completing. If the assumption is correct, after it, the USD/JPY pair will fall to the area of 152.00–149.00. The critical stop loss level for this scenario is 160.50.

The USD/JPY pair is growing for the second consecutive week, having reversed from the 153.12 level (Murrey [2/8]), and is currently trading at 158.40 under pressure from September business activity data that fell short of forecasts.

Despite the yen’s positive momentum, USD/JPY is correcting lower at 154.02 as investors close short positions.