FX.co ★ EUR/JPY Analysis for November 22, 2012

Daily

The rate has consolidated above the level of correction 61.8% of Fibonacci – 104.81 after of the EUR/JPY pair has rebounded from the level of correction 38.2% - 100.73 of Fibonacci and bullish engulfing pattern was built. As a result the growth of the rate may continue towards the next level of correction 76.4% - 107.31. If a bearish candlestick pattern is built, it will increase the probability that the rate will rebound from the level of correction 76.4% of Fibonacci, and the quotes will swing towards the yen and the rate will start descending move to the level of correction 61.8%. The bearish harami pattern does not influence the market any more as the price did not mark its high.

4h

On the 4H the EUR/JPY pair has consolidated above the level of correction 100.0% - 104.57 of Fibonacci. A bearish shooting star pattern was formed; it enables the pair to swing towards the yen and start dropping towards the level of correction 100.0%. If the price does not notice the high of the pattern or a bullish candlestick pattern is built, then the growth may continue towards the level of correction 161.8% - 107.20. It should be mentioned that the growth of the rate is not weak. Thus, there are candlestick patterns, especially bearish ones, among small candlesticks; the price passes through their highs but the patterns itself are weak.