FX.co ★ Elliott wave analysis of USD/JPY for May 23, 2023

USD/JPY is in its very final part of the B-wave correction that began in mid-January after testing support at 127.22. Ideally, we will see USD/JPY test resistance at 140.33 before turning lower. As long as support at 137.42 is able to act as a floor, we should expect a little more upside to test the 140.33 target. Then, the instrument is likely to come under renewed downside pressure in wave C.

If, however, support at 137.42 gives away before testing the 140.33 target, we count wave B as complete and wave C as lower in progress.