Japanese Candlesticks Analysis 31.01.2022 (EURUSD, USDJPY, EURGBP)

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, the asset has formed a Hammer reversal pattern close to the support level. At the moment, EURUSD is reversing and may form a new rising impulse. In this case, the upside target may be at 1.1205. However, an alternative scenario implies that the price may fall to reach 1.1090 without forming any corrections towards the resistance area.

USDJPY, “US Dollar vs Japanese Yen”

As we can see in the H4 chart, USDJPY has formed an Inverted Hammer reversal pattern during the pullback. At the moment, USDJPY is reversing and may start a new rising wave towards the resistance level. In this case, the upside target may be at 116.00. At the same time, an opposite scenario implies that the price may correct to reach 115.15 before resuming its uptrend.

EURGBP, “Euro vs Great Britain Pound”

As we can see in the H4 chart, after forming a Hammer reversal pattern near the support level, EURGBP is reversing and may start another growth towards the resistance area. In this case, the upside target may be at 0.8355. Later, the market may test the area, break it, and continue the ascending tendency. Still, there might be an alternative scenario, according to which the asset may fall to reach 0.8300 first and then resume trading upwards.