Japanese Candlesticks Analysis 08.02.2021 (EURUSD, USDJPY, EURGBP)
EURUSD, “Euro vs. US Dollar”
As we can see in the H4 chart, the descending tendency continues. Right now, after forming several reversal patterns close to the resistance level, EURUSD may reverse and start a new decline. In this case, the correctional target may be at 1.1920. However, an alternative scenario implies that the price may grow to reach 1.2102 before testing 1.1920.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, after rebounding from the channel’s upside border, USDJPY has formed an Engulfing reversal pattern, which may lead to another pullback. Judging by the previous movement, one may assume that the asset may reverse in the form of a slight decline and then resume trading upwards. In this case, the upside target is the resistance area at 105.85. After completing another correction, the price may resume the ascending dynamics. At the same time, an opposite scenario implies that the price may continue its decline to return to 105.25 before resuming its ascending movement.
EURGBP, “Euro vs. Great Britain Pound”
As we can see in the H4 chart, after forming several reversal patterns, such as Hammer, not far from the support level, EURGBP is reversing and may start another pullback. In this case, the correctional target may be the resistance area at 0.8830. However, judging by previous movements, the pair may yet continue its decline to reach 0.8690 without reversing and correcting.