#CurrencyPairPrediction Analyzing USD/JPY Fibonacci Retracement in Downtrends When USD/JPY is in a downtrend, traders often use Fibonacci retracement levels to identify potential areas where the price may temporarily reverse or consolidate before continuing lower. Common retracement levels to watch are 38.2%, 50%, and 61.8%. In a downtrend, price typically pulls back to one of these levels before resuming its decline. Traders look for confirmation signals — like bearish candlestick patterns, resistance zones, or momentum indicators — near these retracement levels to time entries. Proper risk management is crucial, as deeper retracements (beyond 61.8%) could signal a potential trend reversal instead of a continuation.