#CurrencyPairPrediction Fibonacci retracement is a technical analysis tool used to identify potential support and resistance levels based on the Fibonacci sequence. When applied to the USD/JPY currency pair, it helps gauge volatility by measuring the extent of price retracements after a significant movement. Traders use key Fibonacci levels (23.6%, 38.2%, 50%, 61.8%) to predict where the price might reverse or find support/resistance during trends. By observing how the price reacts at these levels, traders can assess market sentiment and volatility, as significant price movements often occur around these retracement zones.