FX.co ★ USD/JPY

USDJPY - In the web of the FIBO grid. A very delicate moment, when the Fibo level -76.4 (161.858) is broken and the current price 161.251 is below the level. Because of this price action, we should expect volatile movement continuing in the direction of the breakout. This kind of market behavior is generally supported by the news background. In a normal market, the -76.4 (161.858) level is a fairly strong structure, acting as bullish support. Reaching it usually leads to sharp volatility in the opposite direction. From observing this level, when the market drops below it, a bearish pattern forms, in which it is preferable to look for shorts. The market can move down for quite a while, but it reacts well to the levels -150 (161.452), -161.8 (161.387). Therefore, when they are reached, you can take profit. That’s already good enough for intraday trading. I’m looking for shorts from the -76.4 (161.858) resistance on a pullback. If candle wicks stick out above it – that’s fine. A close with the candle body above gives the opposite signal, where the bull is. The risk of short failure increases, after which longs form.