Japanese Candlesticks Analysis 01.07.2021 (EURUSD, USDJPY, EURGBP)

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, the downtrend continues. After testing the support area, the pair has formed several reversal patterns, including Harami and Doji. At the moment, EURUSD may reverse and start a new pullback towards the channel’s upside border. In this case, the correctional target may be at 1.1895. However, an alternative scenario implies that the price may fall to reach 1.1800 and continue the downtrend without any corrections.

USDJPY, “US Dollar vs Japanese Yen”

As we can see in the H4 chart, USDJPY has formed several reversal patterns, such as Hanging Man and Shooting Star, not far from the resistance area. At the moment, USDJPY may reverse and start a new pullback. In this case, the correctional target may be the support level at 110.85. At the same time, an opposite scenario implies that the price may continue growing towards 111.50 without testing the support level.

EURGBP, “Euro vs Great Britain Pound”

As we can see in the H4 chart, after forming several reversal patterns during the pullback, such as Shooting Star, EURGBP may reverse and resume falling to reach the next support level. In this case, the downside target may be at 0.8535. Later, the market may break this level and continue the descending tendency. Still, there might be an alternative scenario, according to which the asset may correct to reach 0.8600 before a further decline.