After the quite prolonged ascending trend the EUR/JPY pair’s correction continues its movement. Considering the rebound from Fibonacci correction level 23.6%, the corrective movement towards Fibonacci level 38.2% - 105.92 is likely to be continued. The quotes are expected to be fixed below this level resulting in decline towards the next Fibonacci level 50.0% - 104.22. Unfortunately, there were no bearish candlestick patterns formed near the reversal level 23.6% but, considering the rebound from this level we can assume the continuation of the downside correction. 4h
The more detailed picture on 4H timeframe confirms these conclusions. Rebound from Fibonacci correction level 50.0% enables to assume the rebound near this level. Therefore, presently, the decline of quotes towards Fibonacci correction level 23.6% - 106.16 is likely to be continued. As long as this level is considered intermediary, quotes are expected to be fixed below it indicating the descending movement of the pair towards Fibonacci level of 0.0%– 104.63. This option is considered as the most favorable. The strong bearish formations Absorbtion and Harami pointed at the local reversal of quotes to downwards. Therefore the analysis of candlestick patterns confirms the current option with EUR/JPY decline.