FX.co ★ EUR/JPY candlestick analysis for September 15, 2011

In a 4-hour graph the EUR/JPY currency pair is demonstrating consolidation after a sharp decline earlier. Nevertheless the viewpoint at the pair remains bearish as the downtrend remains.
Earlier in a 4-hour graph the EUR/JPY formed a Long Shadows candlestick indicating a decline confirmed further. This candlestick was formed amid a rollback after a breakthrough of an upside channel, which means that the bears dominate on the market.
Besides, the currency pair broke the support level 110.10 which proves this point of view. Further another bearish combination Three Falling Methods was formed, which intensified the downside movement. At the same time a break of the Fibonacci projection level 61.8 targeted the pair to the support level 106.75. Break of 106.75 will probably lead to a decline to a psychologically relevant support level 100.00.
It is worth mentioning that stop loss should be placed slightly above the resistance level 107.85 as its break will cause upside movement to 110.10.