#CurrencyPairPrediction Backtesting Fibonacci Retracement on USD/JPY Historical Data Backtesting Fibonacci retracement involves applying the tool to historical USD/JPY price data to evaluate its effectiveness in predicting support and resistance levels. Traders identify major price swings (highs and lows) and draw Fibonacci levels (such as 38.2%, 50%, 61.8%) between them. The backtest checks how often the price reacts (bounces or reverses) near these levels. Results typically show that while Fibonacci retracement can highlight potential reaction zones, its success heavily depends on the broader market context, time frame, and confirmation with other indicators. Without additional validation, relying solely on Fibonacci retracement can lead to inconsistent results.