04.05.201211:24 Forex Analysis & Reviews: EUR/JPY Candlestick Analysis for May 4, 2012

Long-term review

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Daily

The EUR/JPY pair’s rate on daily timeframe has fixed below Fibonacci correction level of 38.2% and slightly slowed down the descending movement. The bearish absorption points at a possible further decline of quotes. But the pattern is followed by the bearish Doji Star that indicates the possible growth. That is why considering the candlestick patterns analysis the situation is quite controversial. The pair is most likely to go down towards Fibonacci correction level 50.0% - 104.24. Considering this controversial situation, let us have a look at the smaller chart.

On the smaller chart we can see the restructured Fibonacci grids indicating the descending trend. The “bearish absorption” points at continuation of downside mood of the EUR/JPY pair. The breakdown of Fibonacci correction level 76.4% is to confirm this assumption so the rate will probably move towards the correction level of 100.0% - 104.62. That is why holding the position below the correction level 76.4% is crucial.

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