FX.co ★ EUR/JPY Candlestick Analysis for September 28, 2012

Daily

The EUR/JPY rate continues descending move and does not build any candlestick formations. The quotes fixed under the correctional level of 38.2% - 100.73 Fibonacci. Thus, we can assume the quotes will drop towards the next correctional level of 23.6% - 98.18. Building of bullish candlestick formation may enable the pair swing towards the euro. In this case the quotes may retrace the correctional level of 38.2%. The rebound from the correctional level of 23.6% may enable the pair rise. Fixation under this level will enhance the quotes fall.
4h

On 4H time frame the quotes fell to the correctional level of 76.4% - 99.84 Fibonacci after the bearish Piercing Line candlestick formation was built. Afterwards, following 4 candlesticks were opened and closed at the same level, which means the transition to the flat phase. Thus, next formations built during this stage do not influence the market. If there is a rebound from the correctional level of 76.4% the rate may begin a move towards the correctional level of 100.0% - 101.61. Fixation under 76.4% level will intensify the anticipation of the quotes fall to the next correctional level of 61.8% - 98.74.