FX.co ★ The candlestick analysis of EUR/JPY for 04/06/2010

In 4-hour chart of the EUR/JPY, the combination of candles “Falling Three Methods” is forming. As it is known, this pattern is the signal for a fall and EUR/JPY forms it after the failed try of breaking out the resistance level within 114.10-114.20, which points out that the bears began to increase short positions around this mark.
The formation of this combination of candles will give a good opportunity of opening short positions with further target of 109.69 and below to 108.83.
The fact that in a day chart, the pair has formed “Doji” candle speaks in favor of downfalling movement.
However, if EUR/JPY does not manage to break out the mark of 112.05 and moves upwards, it will mean this viewpoint is incorrect.