As it was expected on Monday the rate has dropped below Fibonacci corrective level of 38.2%. Therefore, the key factor in the current descending movement was and is the rebound of the EUR/JPY pair from Fibonacci correction level 23.6%. Thus, we expect the quotes to fall towards Fibonacci level of 50.0% - 104.24. Considering the analysis of candlesticks patterns there is nothing to be said as no candlestick formations were formed. Nevertheless, the bullish candlestick pattern is likely to be formed near Fibonacci level of 50.0% indicating the rebound from this level with further correction. 4h
As it was mentioned in previous surveys, on the 4H timeframe the situation is the same. The rate continues its downside movement overcoming Fibonacci correction levels one by one. The quotes are also able to reach Fibonacci correction level of 0.0% - 104.62 which is almost equal to the correction level 50.0% on the daily chart. The recently formed bearish pattern is Harami. That is why considering the current analysis the rate is likely to go downwards. The formation of the bullish patter may result in slight growth but in general we expect the further decline of quotes to the levels mentioned.
