FX.co ★ The candlestick analysis of EUR/JPY for 21/06/2010

The EUR/JPY currency pair is testing the resistance level of 113.30 again. On a 4-hour timeframe, the EUR/JPY has shaped “Hammer” candle on the downward trend before. As it is known, this pattern is a signal for increasing movement that has been confirmed thereafter.
This candle formed after the pair had not managed to break out the resistance level between 114.20 and 114.40 and dropped to 108.00, where the bull took the initiative.
Moreover, the currency pair confidently broke through Fibonacci correctional level of 61.8, the breach of which led to the testing of the resistance level around 113.30 which was failed twice. Nevertheless, the pair can to increase to the resistance level of 114.40.
It should be noted that long positions are to close after a descendant breakout of the upper line of the trend and the mark of 111.65, as it will mean the formation of double top.