FX.co ★ remington.kihn | USD/JPY

USDJPY - In the web of the FIBO grid. A very delicate moment, when the Fibo level -76.4 (161.954) is broken and the current price 161.430 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 (161.954) 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 at selling. The market can go down for quite a long time, but it reacts well to the levels -150 (161.686), -161.8 (161.643). Therefore, when they are reached, you can take profit. For intraday trading that’s already good. I’m looking for sells from the -76.4 (161.954) resistance on a pullback. If candle wicks stick out above it – that’s fine. A candle body closing above gives the opposite signal, where the bull is. The risk of a breakdown of the sells increases, after which buys form.