Japanese Candlesticks Analysis 21.10.2021 (EURUSD, USDJPY, EURGBP)

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, the asset has completed the correction by forming several reversal patterns, including Shooting Star, close to the resistance level. At the moment, EURUSD may reverse and start a new decline. In this case, the downside target may be at 1.1542. Later, the market may break the support area and continue trading downwards. However, an alternative scenario implies that the price may correct to reach 1.1700 first and then resume trading downwards.

USDJPY, “US Dollar vs Japanese Yen”

As we can see in the H4 chart, USDJPY has formed several reversal patterns, for example, Hanging Man, while testing another resistance area. At the moment, USDJPY is reversing and may start a new correctional impulse towards the rising channel’s downside border. In this case, the correctional target may be at 113.50. At the same time, an opposite scenario implies that the price may grow to reach 114.95 and continue the ascending tendency without any corrections towards the support level.

EURGBP, “Euro vs Great Britain Pound”

As we can see in the H4 chart, after forming several reversal patterns, such as Hammer and Inverted Hammer, near the support level, EURGBP may reverse and start a new pullback. In this case, the correctional target may be at 0.8484. Later, the market may test the resistance area, rebound from it, and resume the descending tendency. Still, there might be an alternative scenario, according to which the asset may continue falling to reach 0.8400 without testing the resistance area.