FX.co ★ EUR/JPY Candlestick Analysis for December 06, 2012

Daily

After a bullish engulfing pattern was formed and the pair has consolidated above the level of correction 76.4% - 107.32 of Fibonacci the pair continues to grow. If the EUR/JPY consolidates under this level of correction it enables the pair to swing towards the yen and start falling in the direction of the level of correction 61.8% - 104.79. At the moment the quotes allow the rate to continue rising to the level of correction 100.0% - 111.40. A bearish harami pattern was built but the price did not note its high. Thus, the candlestick pattern does not influence the market anymore. So the quotes may rise. If a one more bearish candlestick pattern is formed it increases the possibility of the pair to turn in favour of the yen.

4h

If the pair consolidates above the level of correction 161.8% - 107.20 of Fibonacci, then it enables the pair to continue its growth to the next level of correction 200.05 – 108.85. If the pair consolidates under this level of correction it enables the pair to swing towards the yen and drop of the rate to the level of correction 100.0% - 104.59 can be observed. Formation of bearish harami pattern increases the possibility of the pair to swing towards the yen and the pair reverses to the level of correction 161.8%. The growth of the rate may start at any moment. The correctional levels 76.4% on the daily chart and 161.8% on the 4H chart are virtually similar and may express a considerable support.