To learn more click here
The EUR/JPY pair initially fell on Thursday, but bounced in order to form a hammer right at the 103.55 level. This area is the very top of the recent consolidation area, and as such we are interested in going long of this pair once we clear the 104 handle. If that happens, we think there is a clear path to the 108 handle without too much in the form of resistance.
However, a break of the lows from the Thursday session would turn this hammer into a "hanging man", and this has us selling as we would race back towards at least the 102 level, if not the 100 level.