Maximizing Profits with Advanced Pro Charts: A Case Study on #USDJPY Rejection of the .618% FIB & Banking +253 Pips

After the Change of Character (CHOCH) indicated by the prominent red background on the chart, it is often observed that a pullback occurs as part of the price action dynamics. This phenomenon typically signifies a temporary reversal in the prevailing trend, allowing traders to reassess market conditions and potential entry points.

In this specific instance, the price exhibited a pullback that was notably aligned with the .618% Fibonacci retracement level, which is a critical zone that many traders watch closely for potential support or resistance. This Fibonacci level, marked at 150.23, serves as a significant area where the price historically tends to react, either by reversing or continuing its trend. The rejection at this level indicates that sellers were able to step in, pushing the price lower after the initial attempt to rally.

Following this rejection at the .618% Fibonacci zone, the price then proceeded to move towards our predetermined target of 147.76. This target was likely established based on previous price action analysis, support levels, or other technical indicators that suggest where the price could potentially find support or experience a reversal. The movement towards this target reinforces the importance of understanding key Fibonacci levels in conjunction with price action signals, as they can provide valuable insights into market behaviour and help traders make informed decisions.

Overall, the interplay between the CHOCH, the Fibonacci retracement levels, and the subsequent price movement towards the target demonstrates a classic scenario in technical analysis where traders can capitalize on market fluctuations by recognizing patterns and reacting accordingly.

Chris

Head Coach & Trader for over 35 years