EUR/JPY Price Analysis: Hovers near 117.00, Upside favored on Tuesday's bullish hammer

• EUR/JPY created a bullish hammer candle on Tuesday after defending key support. 
• A corrective rally to a descending average resistance could be in the offing.

EUR/JPY is trading in a sideways manner around 117.00 at press time. 

On Tuesday, the pair hit a low of 116.22, but ended the day at 117.00 (just below highs), forming a bullish hammer candle - a sign of impending bullish reversal - more so, in this case, as the candle has appeared at the strong support of 116.35. 

As can be seen on the daily chart, the pair has found takers at or below 116.35 multiple times since early March. 

As a result, the path of least resistance appears to be on the higher side. The pair could challenge the 10-day average at 117.43. On the downside, a daily close under 116.35 would be bearish. 

Daily chart

Trend: Bullish

Technical levels