Possible hammer on the USD/JPY

On the daily chart of the USD/JPY we can see that the actual daily candle has formed what it appears to be a hammer formation. The hammer is a bullish reversal pattern that is confirmed when the next candle is also bullish. The formation of the candle with its long lower shadow is indicating that the buyers have taken control of the market. If the next candle is bullish, then that is showing us that the buyers may still be in control of the market and the pair may pull back to the 108.00 level, zone that may act as resistance. The pair is clearly over-extended to the downside and that is high there is good probability of watching the USD/JPY make a correction, but the bearish trend is still in place. For now, the 109.00 level may continue acting as support.