On the H4 chart, after breaking 8/8, USDJPY is no longer trading within the “overbought” area. In this case, the price is expected to test the resistance at 8/8, rebound from it, and resume falling and reach 6/8. However, this scenario may no longer be valid if the price breaks the resistance at 8/8 to the upside. After that, the instrument may reverse and grow towards 1/8.
As we can see in the M15 chart, the downside line of the VoltyChannel indicator is pretty far away from the price, that’s why the pair may resume trading downwards only after rebounding from 8/8 in the H4 chart.
USDCAD, “US Dollar vs Canadian Dollar”
As we can see in the H4 chart, after breaking the 200-day Moving Average, USDCAD is also trading below it, thus indicating a possible descending tendency. In this case, the price is expected to test 1/8, break it, and then continue falling towards the support at 0/8. On the other hand, this scenario may no longer be valid if the pair breaks the resistance at 2/8 to the upside. After that, the instrument may reverse and grow to reach 3/8.
In the M15 chart, the pair may break the downside line of the VoltyChannel indicator and, as a result, continue trading downwards.