FX.co ★ Elliott wave analysis of USD/JPY for January 18, 2023

The spike higher is confirmation that wave b of B completed with the test of 127.22 and wave c of B now is in progress towards the 138.20 - 138.73 area to complete the expanded flat correction in wave B. The ongoing c-wave should unfold in five sub-waves and end above the termination point of wave a at 134.77.

That said, we must remember that B-wave has an endless variety of wave combinations at its disposal, making them very difficult to decipher. That doesn't mean that the Elliott wave principle doesn't apply, it absolutely does, but the waves don't really reveal themselves until the very last minute.