Daily
After a bearish engulfing candlestick was formed, the EUR/JPY pair edged down. However, after a bullish engulfing candlestick was built it swung towards the euro and the growth of the quotes continues. As a result the rise may extend to the level of correction 161.8% - 122.11. Formation of one more bearish candlestick pattern may provide traders a chance to consider the swing to the yen and the rate starts falling towards the level of correction of Fibonacci 100.0% - 111.46. Consolidation of the EUR/JPY pair above the level of correction 161.8% enables the pair to grow to the next level of Fibonacci 200.0% - 128.71. Rebound of the quotes from the level of correction 161.8% increases the possibility of one more swing to the yen.
4h
After the bullish engulfing pattern was built, the pair continued growing and consolidated above the level of correction 423.6% - 118.40 of Fibonacci. It enables the pair to continue rising towards the level of correction 523.6% - 122.62. Formation of a bearish candlestick pattern enables the pair to turn in favour of the yen and reverse to the level of correction 423.6% of Fibonacci. Rebound of the rate from the level of correction 523.6% provides a chance to consider the pair turns to the yen. The levels 523.6% on H4 and 161.8% on the daily chart almost coincide. Thus, they are strong.
