USD/JPY: buy targets - 120.50 and 121.70
• USD/JPY reversed from combined support zone
• Next buy targets - 120.50 and 121.70
USD/JPY recently reversed down after reaching the buy target 121.70, which was set in our previous report for this currency pair. The subsequent downward correction 2 from this resistance level stopped at the combined support area lying between the support level 118.50 (this support level reversed the price multiple times in February, as you can see from the daily USD/JPY chart below), 50% Fibonacci Correction of the previous strong upward impulse from the middle of January and the lower daily Bollinger Band. The upward reversal from this support zone created the Japanese candlesticks reversal pattern Hammer (highlighted below).
USD/JPY is likely to rise further inside the active minor impulse 3 toward the next buy targets 120.50 and 121.70. Strong support remains at 118.50.