Japanese Candlesticks Analysis 18.01.2021 (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, such as Hammer, close to the support level, EURUSD may reverse in the form of another rising impulse. The upside target may be at 1.2145. After that, the pair may resume trading downwards. However, an alternative scenario implies that the price may start a new decline to reach 1.2010 without reversing and correcting.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, after rebounding from the channel’s upside border and forming a Doji reversal pattern, the pair is still trading sideways. The target of the reversal pattern materialization is the channel’s upside border at 104.15. After testing this level, USDJPY may resume trading downwards to reach the next support area at 103.00.
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 may reverse and start another pullback. In this case, the upside target may be at 0.8980. However, judging by previous movements, the pair may yet continue its decline to reach 0.8840 without reversing and correcting.