FX.co ★ EUR/JPY Wave Analysis for November 16, 2012

Daily

After EUR/JPY has rebounded from the correctional level 38.2% - 100.73 of Fibonacci on the daily chart the pair continues its upswing in the value of the euro towards the level of correction 61.8% - 104.81. The consolidation above the level enables the growth of the rate towards the next level of correction 76.4% - 107.30. Formation of a bearish candlestick pattern allows the pair to make a turn in favor of the yen and start falling. The rebound from the correctional level 61.8% of Fibonacci enables the pair to drop towards the level of correction 38.2%. The last candlestick pattern that was formed was bullish engulfing pattern. It enables the pair to rebound from the level of 38.2% of Fibonacci and start growing.
4h

On the 4H chart after the bullish engulfing pattern and bullish harami pattern were formed, the quotes consolidated above the level of correction 23.6% - 103.42 of Fibonacci. As a result the rise of the rate may continue towards the next level of correction 0.0% - 104.58. A rebound from this correctional level gives a reason to consider the beginning of drop towards the yen. Formation of bearish harami pattern enables the pair to move down and consolidate under the level of correction 23.6%. In this case the drop of the rate may continue towards the level of correction 38.2% - 102.69. The rebound from the level of correction 23.6% provides a possibility for the pair to resume the upswing.