Japanese Candlesticks Analysis 19.02.2021 (EURUSD, USDJPY, EURGBP)
EURUSD, “Euro vs. US Dollar”
As we can see in the H4 chart, the ascending tendency continues. Right now, after testing the support area and forming several reversal patterns there, including Hammer, EURUSD may continue reversing. In this case, the upside target may be at 1.2190. However, an alternative scenario implies that the price may correct to reach 1.2050 before testing 1.2190.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, USDJPY has formed a Shooting Star reversal pattern while testing the resistance level. Judging by the previous movements, one may assume that the asset may reverse and start a new pullback. In this case, the correctional target is the support area at 105.30. after that, the instrument may rebound from this level and resume the ascending tendency. At the same time, an opposite scenario implies that the price may continue its growth to reach 106.30 without testing the support level.
EURGBP, “Euro vs. Great Britain Pound”
As we can see in the H4 chart, after forming an Inverted Hammer reversal pattern not far from another support level, EURGBP may reverse and form a slight pullback. In this case, the correctional target is the resistance area at 0.8700. Still, there might be an alternative scenario, according to which the asset may continue falling to reach 0.8615 without correcting towards the resistance level.