Daily
After the bullish engulfing pattern was formed the EUR/JPY rose to the level of correction 76.4% - 107.32 of Fibonacci. The rebound from this correctional level enables the pair to swing towards the yen and start dropping in the direction of the level of correction 61.8% - 104.79. Consolidation of the quotes above the level of Fibonacci 76.4% allows the pair to continue growing to the level of correction 100.0% - 111.40. If a bearish candlestick pattern is formed then it will increase the possibility that the rebound from the level of correction 76.4% of Fibonacci and drop of the EUR/JPY rate on the daily chart will be observed.
4h
After the bullish engulfing pattern was formed the quotes rose to the level of correction 161.8% - 107.20 and it has been still for the second day. As a result it is not clear whether the quotes are above or under the level of 161.8%. Consolidation of the quotes under this level facilitates a swing towards the yen and the rate starts falling towards the level of correction 100.0% - 104.59. Building of a bearish candlestick pattern increases the probability of the rate to turn in favour of the yen. Consolidation of the rate above the level of correction 161.8% permits the pair to continue growing in the direction of the next level of correction 200.0% - 108.85. Correctional levels of 76.4% on the daily chart and 161.8% on the 4H chart are virtually similar.