FX.co ★ EUR/JPY Candlestick Analysis for October 3, 2012

Daily

EUR/JPY pair fixed above the correctional level of 38.2% - 100.72 Fibonacci on the daily chart. Bullish candlestick formation Harami was built which demonstrated a quotes’ swing to the euro. If the quotes fix above 38.2% Fibonacci, it will be possible to think of their growth towards 50.0% - 102.76 Fibonacci. In case bearish candlestick formation is built, the rate may fall back below correctional level of 38.2%. In this case the quotes can edge down to correctional level of 23.6% - 98.16 Fibonacci.
4h

After the bearish candlestick formation Absorption was performed, the pair tried to go lower on 4H time frame. But on the third candlestick the quotes reversed towards the euro. Thus, the growth may accelerate to correctional level of 100.0% - 101.62 Fibonacci. Bearish candlestick formation will contribute to quotes fall towards 76.4% - 99.83 Fibonacci. Fixation below this level will enable the decrease towards 61.8% - 98.75. We can also see the rebound from correctional level 100.0%, but in case the pair fixes above it, the quotes may grow further.