FX.co ★ EUR/JPY Candlestick Analysis for December 19, 2012

Daily

The EUR/JPY reached the level of correction 100.0% - 111.43. Today it will either rebound from it or consolidate above it. The rebound of the quotes from the level of Fibonacci 100.0% allows us to assume the rate swings towards the yen and starts falling towards the level of correction 76.4% - 107.32. Formation of a bearish candlestick pattern increases the possibility of the rebound of the rate and pullback to the level of correction 76.4% of Fibonacci. However, building of bullish engulfing pattern gives a chance the quotes to consolidate above the level of Fibonacci 100.0%. It will enable the pair to continue growing to the next level of correction 161.8% - 122.11..

4h

On 4H after the bullish engulfing pattern was built the pair turned in favour of the euro and consolidated above the level of correction 261.8% - 111.45 of Fibonacci. Thus, the rise of the rate may extend to the next level of correction 323.6% - 114.03 of Fibonacci. Building of a bearish candlestick formation may allow the pair to reverse to the level of correction 261.8% of Fibonacci and consolidate under it. Consolidation of the quotes under the level of Fibonacci 261.8% makes a drop of the pair to the level of correction 200.0% - 108.82 possible.