Japanese Candlesticks Analysis 09.10.2019 (EURUSD, USDJPY)

EURUSD, “Euro vs. US Dollar”

As we can see in the H4 chart, the descending channel continues. At the moment, the pair continues trading close to the channel’s upside border and forming reversal patterns, including Harami. Later, the price may rebound and resume falling to reach 1.0888. However, one shouldn’t exclude a possibility that the price may break the resistance level and continue growing towards 1.1022.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, after breaking the descending channel’s downside border, the pair has formed Hammer pattern close to the horizontal support level. Right now, USDJPY is reversing and may later continue growing to return to 108.55. However, we shouldn’t ignore an opposite scenario, according to which the instrument may fail to reverse and then start a new decline to reach 106.30.