Japanese Candlesticks Analysis 21.01.2021 (EURUSD, USDJPY, EURGBP)
EURUSD, “Euro vs. US Dollar”
As we can see in the H4 chart, the ascending 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 1.2180. After that, the pair may rebound from the resistance level and resume trading downwards. However, an alternative scenario implies that the price may start a new decline to reach 1.2020 without testing 1.2180.
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 Shooting Star pattern, the pair is still reversing. The downside target may be the support area at 102.85. After completing another correction, USDJPY may resume trading downwards. At the same time, an opposite scenario implies that the price may continue its growth to return to 104.00 before resuming its decline.
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 correctional target may be at 0.8925. However, judging by previous movements, the pair may yet continue its decline to reach 0.8785 without reversing and correcting.