FX.co ★ Elliott wave analysis of USD/JPY for January 3, 2023

We have seen the expected break below the former low at 130.56. This should be the final decline in wave A. We should see wave B take over anytime now for a corrective rally towards 141.25 and perhaps closer to the 61.8% corrective target at 143.78.

In the short term, a break above minor resistance at 130.33 and more importantly a break above resistance at 131.40 will confirm that wave A has been completed and wave B is in progress towards 141.25.

This is not the time to go short USD for more downside progress.