USD/JPY: buy target - 118.00
By: Dmitriy Chernovolov
- USD/JPY reversed from pivotal support level 116.50
- Next buy target - 118.00
USD/JPY recently reversed up from the pivotal support level 116.50 (which reversed previous waves (A) and 1 in October and January, as you can see from the daily USD/JPY chart below). When this support level reversed the price in the middle of January the pair formed the strong double Japanese candlesticks reversal pattern - Bullish Engulfing, the first candle of which is the daily Hammer.
The last time the price reversed up from the support level 116.50 the pair formed the daily Japanese candlestick reversal pattern Long-legged Doji. Given the strength of the support level 116.50 - USD/JPY is likely to rise to the next buy target at the resistance level 118.00.