#CurrencyPairPrediction Central bank actions, such as interest rate changes or monetary policy shifts, can significantly impact the USD/JPY currency pair. These actions influence investor sentiment, market liquidity, and overall risk appetite. The Fibonacci retracement levels, used to identify potential support and resistance levels in a price movement, can be impacted by these shifts. For example: 1. Rate Hikes/Cuts: A rate hike by the U.S. Federal Reserve or a rate cut by the Bank of Japan may lead to stronger USD/JPY movements, potentially breaking or respecting Fibonacci retracement levels. 2. Quantitative Easing (QE): If the Fed or BoJ engages in QE, it could weaken the currency involved, causing the price to retrace to different Fibonacci levels. 3. Market Sentiment: Central bank policies that impact market confidence can result in sharp price movements, causing the market to either reach or reverse at key Fibonacci levels. Thus, central bank actions can trigger or coincide with Fibonacci retracements as part of broader market reactions.