Nov 2 (Reuters) - The euro usually rises against the yen in November and signs on the daily chart suggest the pattern could repeat this year.

EUR/JPY's seasonal performance since 2000 shows it has risen in 17 of the last 26 years, or 65% of the time. While seasonality patterns should not be considered in isolation, when combined with other factors they can become a useful tool.

Friday's EUR/JPY candle left a long tail and that points to a possible rejection of the downside. There is scope for a bigger recovery through the 178.00 level, which aligns with the 23.6% Fibonacci retracement of the 187.43-175.09 (July to November) EBS fall. A break and daily close above the 178.00 level would add to the bullish market structure and increase the likelihood that the cross will end November in positive territory.

However, those who are bullish should be mindful that the 14-day momentum reading is negative, though it could be on the verge of turning positive this week.
Daily Chart


Seasonality Chart

(USD/JPY Martin Miller is a Reuters market analyst. The views expressed are his own. Editing by Louise Heavens)