As it was expected, yesterday the EUR/JPY pair has managed to elaborate the Fibonacci correction level of 61.8%. Moreover, the quotes were fixed below this level though this fact cannot be considered as a convincing. Therefore, if this fixation is stronger, quotes are expected to drop further towards correction level of 76.4% - 100.42. In case this fixation is false, especially if a bearish formation is formed near this level, the rate will be able to restore slightly towards the Fibonacci level of 50.0% - 104.22. The bearish formation Harami points at the downside movement. There were no patterns that may influence the pair’s movement.
On the 4H timeframe the situation is the same. The rate has dropped a bit lower than the Fibonacci correction level of 161.8%. In case the rate declines further, the fixation will be considered as more convincing. As a result. The forecast for both timeframes will coincide and the pair will try to go down to the level of figure 100 (100.42 – 76.4% of Fibonacci on the daily timeframe). In general during the last days the pair remained on the same place. A lot of new different candlestick patterns were formed. Nevertheless, yesterday the bearish Absorption pattern was formed forecasting the further decline of quotes.
