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. 

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

 

 

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