Growth is possible.

On the daily chart, the upward fifth wave of the highest level 5 and the wave (1) of 5 form. Now, the third wave of the lowest level iii of 3 of (1) develops, within which the wave (iii) of iii has ended, and the correctional wave (iv) of iii is developing. If the assumption is correct, the USD/JPY pair will grow to the area of 156.00–158.00. In this scenario, the critical stop loss level is 150.00.

The USD/JPY pair is correcting in an uptrend around 151.85 after the victory in the parliamentary elections of Sanako Takai, a supporter of the “dovish” course, which may bring significant changes to the decisions of the Bank of Japan, which is preparing to tighten monetary policy.

The US dollar is showing a slight decline in the USD/JPY pair in Asian trading, retreating from local highs from February 14, updated the day before. 

The USD/JPY pair broke through the resistance level of 150.70 and changed its trend to upward, adding more than 3.48% in value since last week’s close amid the election victory of Liberal Democratic Party leader Sanae Takaichi, who, among other things, advocates a softer monetary policy, tax cuts, strengthening the military, and the return of direct subsidies for small and medium-sized businesses in the amount of about 20.0T yen.

The USD/JPY pair has been actively correcting this week and yesterday reached three-week lows in the area of 146.60 amid the US government shutdown and the publication of weak September employment data from Automatic Data Processing (ADP), but today quotes resumed growth.