Japanese Candlesticks Analysis 21.07.2022 (EURUSD, USDJPY, EURGBP)

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, the asset has formed a Shooting Star 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 1.0120. However, an alternative scenario implies that the price may correct to reach 1.0340 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 Hammer reversal pattern not far from the support area. At the moment, the asset may reverse and form a new ascending impulse. In this case, the upside target may be at 140.00. At the same time, an opposite scenario implies that the price may correct to reach 137.60 and continue the uptrend only after testing the support area.

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 rising impulse. In this case, the upside target may be the resistance level at 0.8550. 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 0.8460 without testing 0.8550.