Will the EUR/JPY close with a Hammer Candlestick Formation on the Daily chart?

A Hammer is a Japanese Candlestick Bullish Reversal Pattern, which indicates a possible change of direction or correction to the upside, especially if the lower shadow of the candlestick is relatively long and the pattern appears at a strong support zone. We can see on the daily chart below of the EUR/JPY that the pair is trying to bounce to the upside from the zone between the 1.3800 round number level and the 200 Day Exponential Moving Average. If today’s candle closes as a Hammer Formation, then there is a higher probability of seeing a bounce to the upside.

However, we must keep in mind that tomorrow’s fundamentals must support the rally; otherwise the price may break this zone to the downside. For tomorrow we have the PMIs reports out of the Euro Zone and in order to see a reversal on the EUR/JPY, the readings must support the single currency, otherwise there could be more bearish moves on the pair.