Daily
After the rate has consolidated on the daily chart above the level of correction 61.8% of Fibonacci – 104.81, the bearish harami pattern was formed and the rate started falling. As a result the drop of the EUR/JPY pair may continue towards the level of correction 61.8%. Building of bullish candlestick pattern enables the pair to swing to the common currency and reverse to the level of correction 76.4% - 107.31 of Fibonacci. Consolidation of the EUR/JPY rate above the level of Fibonacci 76.4% enables the pair to continue ascending move to the level of correction 100.0% - 111.40. Building of bullish candlestick formation near the level of correction of 61.8% increases the probability of rebound from this level.
4h
On the 4H chart after the bearish engulfing pattern had been formed the quotes made an extra swing near the level of correction 161.8% - 107.2 of Fibonacci and started dropping. As a result falling may continue in the direction of the level of correction 100.0% - 104.59. Building of bullish candlestick formation may enable the swing towards the euro and the reverse of the EUR/JPY pair to the level of correction 161.8% of Fibonacci. Consolidation above this level of correction enables the rate to continue growing towards 108.85, the next level of correction. The rebound from the level of 100.0% of Fibonacci allows the pair turn in favour of the single currency and start rising.
