Japanese Candlesticks Analysis 18.07.2022 (EURUSD, USDJPY, EURGBP)

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, the asset has formed a Long-Legged Doji reversal pattern close to the resistance area. At the moment, EURUSD may reverse in the form of another descending impulse. In this case, the downside target may be at 0.9950. However, an alternative scenario implies that the price may correct to reach 1.0145 and continue the downtrend only after testing the resistance area.

USDJPY, “US Dollar vs Japanese Yen”

As we can see in the H4 chart, USDJPY has formed a Hanging Man reversal pattern not far from the resistance area. At the moment, the asset may reverse and form a new descending impulse. In this case, the downside target may be at 137.60. At the same time, an opposite scenario implies that the price may grow to reach 140.00 and continue the uptrend without testing the support level.

EURGBP, “Euro vs Great Britain Pound”

As we can see in the H4 chart, after forming a Hammer reversal pattern near the support area, EURGBP is reversing in the form of a new ascending impulse. In this case, the upside target may be the resistance level at 0.8520. Later, the market may test this level, rebound from it, and resume moving downwards. Still, there might be an alternative scenario, in which the asset may continue falling to reach 0.8390 without testing the resistance level.