Japanese Candlesticks Analysis 22.07.2021 (EURUSD, USDJPY, EURGBP)

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, the asset is still testing the channel’s upside border. After testing the support area, the pair has formed several reversal patterns, including Hammer. At the moment, EURUSD may reverse and start a new pullback. In this case, the correctional target may be at 1.1850. Later, the market may rebound from the resistance level and resume trading downwards. However, an alternative scenario implies that the price may fall to reach 1.1717 without testing the resistance level.

USDJPY, “US Dollar vs Japanese Yen”

As we can see in the H4 chart, USDJPY has formed several reversal patterns, such as Hammer and Inverted Hammer, not far from the support area. At the moment, USDJPY is reversing and may start a new rising movement towards the resistance level after finishing a slight correction. In this case, the upside target may be at 110.65. At the same time, an opposite scenario implies that the price may form a deeper pullback towards 109.85 before resuming the ascending tendency.

EURGBP, “Euro vs Great Britain Pound”

As we can see in the H4 chart, after forming a Shooting Star reversal pattern near the resistance area, EURGBP may reverse and start a new descending structure. In this case, the downside target may be at 0.8550. Later, the market may break the support level and continue its descending tendency. Still, there might be an alternative scenario, according to which the asset may correct towards 0.8615 first and then resume trading downwards.