#CurrencyPairPrediction The Fibonacci retracement strategy is used to identify potential support and resistance levels during a currency pair's price consolidation. In the case of USD/JPY, when the market is consolidating, traders apply Fibonacci retracement levels (typically 23.6%, 38.2%, 50%, 61.8%, and 78.6%) to identify areas where the price might reverse or stall. During consolidation, the price typically retraces part of its previous trend before continuing in the original direction. Key steps: 1. Identify the recent swing high and low on the USD/JPY chart. 2. Apply the Fibonacci retracement levels between these two points. 3. Watch for price to react at these levels, where it may reverse, stall, or break through. 4. Combine Fibonacci levels with other indicators (like RSI or MACD) for confirmation. This strategy is particularly useful in consolidation phases, as the market tends to retrace a certain percentage of its movement before deciding on a direction.