USD/JPY Price Analysis: Hammer hinting at bullish reversal

USD/JPY charted a long-tailed hammer candle on Thursday.
A strong follow-through on Friday is needed to confirm bullish reversal.

Omkar Godbole FXStreet Contributor

USD/JPY is currently trading at 109.03, representing a 0.10% gain on the day, having hit a high and low of 109.14 and 108.88, respectively.

The pair is looking to post a bullish follow-through to the classic long-tailed hammer candle created on Thursday. That candle is widely considered an early sign of bullish reversal, the trend change, however, requires confirmation from a successive up-day

Put simply, a bullish reversal would be confirmed if the pair prints a close above 109.06 on Friday. That would open the doors for a rise to resistance at 109.70.

On the other hand, if the pair fails to close above 109.06, the pair could see consolidation. Meanwhile, a close below Thursday’s low of 108.58 would expose the Jan. 8 low of 107.65.

Daily chart

Trend: Teasing bull reversal

Technical levels

USD/JPY

Overview
Today last price	109.06
Today Daily Change	0.15
Today Daily Change %	0.14
Today daily open	108.91

Trends
Daily SMA20	109.39
Daily SMA50	109.21
Daily SMA100	108.75
Daily SMA200	108.45

Levels
Previous Daily High	109.14
Previous Daily Low	108.58
Previous Weekly High	110.22
Previous Weekly Low	109.17
Previous Monthly High	109.8
Previous Monthly Low	108.43
Daily Fibonacci 38.2%	108.78
Daily Fibonacci 61.8%	108.89
Daily Pivot Point S1	108.64
Daily Pivot Point S2	108.36
Daily Pivot Point S3	108.13
Daily Pivot Point R1	109.14
Daily Pivot Point R2	109.36
Daily Pivot Point R3	109.64

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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