Today i want to share a simple chart, a cuple of hammers at support zone, and this could be found as well in the USDJPY as in the EURJPY.
I'll take the USDJPY because seems better the risk reward ratio.
The idea is to take at least the 98.89 target because a hammer is a good early reversal under the japanese candlesticks but, find 2 hammers in the same zone is a stronger signal. Even more if you observe that after the first hammer had been formed the price refused to close below it until the last thursday and even in this case the price could not close below the low of the 2nd hammer formed the prior day.
The target is due the resistance zone starting at 98.895
Comments
7pasos
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The rally had been so fast that I start to fear a illiquid reaction to the downside so just in case, place your stop at break even.