Japanese Candlesticks Analysis 09.07.2020 (EURUSD, USDJPY, EURGBP)

EURUSD, “Euro vs. US Dollar”

As we can see in the H4 chart, the pair has started forming a new ascending channel. Right now, EURUSD is reversing after forming a Hammer pattern. Considering the current bullish dynamics, the price may finish the correction and then resume trading upwards to reach the resistance level at 1.1420. At the same time, an alternative scenario implies that the instrument may continue falling to return to 1.1330.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, after forming an Engulfing pattern not far from the resistance area, USDJPY has started reversing. At the moment, the pair is moving downwards. The current situation implies that after a slight correction the market may resume the descending tendency towards the support level at 106.67. Still, there is an opposite scenario, which says that the instrument may grow and return to 108.08.

EURGBP, “Euro vs. Great Britain Pound”

As we can see in the H4 chart, after testing the rising channel’s downside border and forming a group of reversal candlestick patterns, including Hammer, EURGBP has started reversing. The upside target remains at 0.9120. In the future, the instrument may continue trading upwards to update the highs. However, there might be another scenario, according to which the asset may correct towards the support level at 0.8950.