Daily

Due to low volatility, the EUR/JPY rate is still flat. Candlestick formations which are being formed from time to time, do not affect the price. We have just seen bullish Harami and bearish Long Legged Doji. However, they cannot move the quotes significantly. Thus, when the flat is over, the rate may grow towards correctional level of 76.4% - 100.44 Fibonacci. At the same time, it can also fall towards 100.0% - 97.01 of Fibonacci. On 4H chart the flat is even more obvious, that is why let us examining this chart better.

4h

On 4H chart the rebound from correctional level of 61.8% - 98.74 Fibonacci was not unexpected as well as the rebound from correctional level of 50.0% demonstrated earlier. The bullish candlestick formation Absorption was formed which enabled the rise towards Fibonacci level of 61.8%. Now we can expect the rebound from that level without bullish formation with the quotes fall towards 50.0% - 97.86. Overcoming of 50.0% and 61.8% contributes to upward or downward movement respectively. However, fixation above the correctional level of 61.8% is not meaningful as the sideways channel boundary is placed at the level of 99.00.