Japanese Candlesticks Analysis 28.01.2020 (EURUSD, USDJPY)

EURUSD, “Euro vs. US Dollar”

As we can see in the H4 chart, the pair is no longer trading inside the ascending channel. Right now, EURUSD has completed several reversal candlestick patterns, such as Harami. We may assume that later the price may reverse and form a slight correction, which may be followed by a further decline to reach the support level at 1.0992. However, one shouldn’t exclude a possibility that the price may form a more serious correction and reach 1.1075.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, USDJPY has fallen from the ascending channel’s upside border while reversing after forming Shooting Star pattern. At the moment, the price is moving near the channel’s downside border, where it earlier formed several reversal patterns, such as Hammer. The current situation implies that the pair may reverse and resume growing to reach 109.65. At the same time, the pair may choose another scenario, according to which it is expected to continue falling towards 108.45.