FX.co ★ Elliott wave analysis of USD/JPY for April 14, 2023

USD/JPY remains locked within the corrective decline that began back in October 2022 from the peak of 151.94. We continue to look for a decline to the 122.77 target, from where a new impulsive rally could begin. In the short term, we expect minor resistance at 132.80 to be able to cap the upside for a break below support at 131.59 for a continuation lower towards our ideal target at 122.77.

However, it will take a break above resistance at 133.40 to delay the expected decline towards 122.77. A break above resistance at 133.40 will call for a retest of 134.06 and likely even closer to 134.75 before the price comes under downside pressure again.