Technical analysts at Mizuho Corporate Bank claim that the big “hammer” formed on Friday on the EUR/JPY candle chart is regarded as the third and the last in the series and marks an interim minimum. The low of the “hammer” lies at 111.04, that is below 2 previous downside tests. The specialists note that the daily close above the top of a large daily Ichimoku Cloud was able to change momentum from bearish to bullish.

According to Mizuho, it’s necessary to buy on the dip to 112.50 stopping below 111.50 as the analysts expect the single currency to rise to 113.50 and then to 114.40.

Chart. Daily EUR/JPY



More info about FBS