Murrey Math Lines 05.06.2019 (USDJPY, USDCAD)

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, USDJPY is trading below the 3/8 level and may continue falling to reach the support at the 1/8 one. However, this scenario may be no longer valid if the price breaks the 3/8 level. In this case, the instrument may resume trading upwards to reach the resistance at the 5/8 one.

In the H1 chart, the pair is trading close to the “oversold zone”. In addition to that, there is Head & Shoulders reversal pattern with the neckline at the 1/8 level. As a result, the price may move upwards in case it breaks the above-mentioned level. The first upside target will be the resistance at the 3/8 level. However, this scenario will no longer be valid if the instrument breaks the 0/8 level. In this case, the instrument may continue falling to reach the -2/8 level.

USDCAD, “US Dollar vs Canadian Dollar”

In the H4 chart, USDCAD tested the resistance at the 8/8 level and rebounded from it, just as expected. The downside target is the support at the 0/8 level; the price is quickly falling to reach it. Right now, the pair is trading below the 3/8 level, thus confirming this scenario. However, when the instrument falls very quickly, there is always a possibility of a correction. This correction may start if the pair breaks the 3/8 level. In this case, the upside correctional target will be the resistance at the 4/8 one.

As we can see in the M15 chart, the pair has broken the downside line of the VoltyChannel indicator and, as a result, may continue trading downwards.