USD/JPY takes support around 118.50, jump till 120.80 is possible

• RES3 :122.01 (Mar 10^th high)
  
  
• RES 3: 121.18 (Mar 20^th high)
  
  
• RES 2: 120.80 (13^th Apr high)

• RES 1: 120.08 (Apr 22^nd high)

PRICE: 119.66 @ 05:06 GMT 

• SUP1: 119.10 (20 day 4HMA)
  
  
• SUP 2: 118.50 (Apr 20^th low)

• SUP 3 118.16 (61.8% retracement of 115.85 and 122.01)

• SUP 3 -116.85 (Feb 3^rd low)

COMMENTARY:

USD/JPY has recovered from low of 118.48 after release of better than expected US Economic data.

US Jobless claims tumbled to 15 year low and consumer spending increased in March, signs the economy was regaining momentum in the second quarter.

Technically USD/JPY has broken major support 118.50, lack of follow through selling and current rebound above short term resistance 119.45 suggests that it has formed temporary bottom around 118.50, a jump till 120.09/120.80 cannot be ruled out.

Short term bullish invalidation level-118.16. Any break below 118.16 will drag the pair further down till 116.85/115.90 in short term.

Indicator (4 hour chart)

CCI (50) - Buy

Woodies CCI (14) - Buy

Ichimoku- Buy

It is good to buy at dips around 119.30 for the target of 120.08/120.85 with stop around 118.50.