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10.09.2012 04:28 PM
EUR/JPY Candlestick Analysis for September 10, 2012

Daily

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After two weeks of being in the narrow sideways channel, the EUR/JPY rate demonstrated a quotes’ growth for three days and reached the correctional level of 76.4% - 100.44 Fibonacci on Friday. Building of two bearish formations (but during the period of low volatility) did not affect the price. The rate can turn in favor of the yen near the correctional level 76.4% and then begin the downward movement which may continue until the correctional level of 100.0% - 97.01. On the other hand, quotes fixation above the Fibonacci level of 76.4% may enable the quotes rise towards the correctional level of 61.8% - 102.55. Bearish candlestick formation will intensify the expectations of quotes rebound from the level of 76.4%.


4h

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4-hour chart also shows continuation of quotes growth after two weeks’ lull. Fixation of rate above the correctional level 76.4% - 99.85 Fibonacci happened on Friday. The bearish candlestick formation Shooting Star was formed after it; however, it did not help the quotes to fall below the correctional level of 76.4%. Moreover, bullish candlestick formation Harami was formed on the next candlestick which contributed to the further quotes growth towards the correctional level of 100.0% - 101.62. If the fixation below the correctional level of 76.4% Fibonacci happens, the pair will get the opportunity to shrink to the correctional level of 61.8% - 98.74.

Summary
Urgency
Analytic
Grigory Sokolov
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