Japanese Candlesticks Analysis 26.01.2021 (EURUSD, USDJPY, EURGBP)
EURUSD, “Euro vs. US Dollar”
As we can see in the H4 chart, the correction within the ascending tendency continues. Right now, after forming several reversal patterns, such as Engulfing, close to the resistance level, EURUSD may reverse in the form of another pullback. In this case, the correctional target may be at 1.2020. After that, the pair may rebound from the support level and resume trading upwards. However, an alternative scenario implies that the price may start a new growth to reach 1.2180 without testing 1.2020.
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 has reversed. The downside target is still 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 is reversing and may start another pullback. In this case, the correctional target may be the resistance area at 0.8935. However, judging by previous movements, the pair may yet continue its decline to reach 0.8785 without testing the resistance area.