#CurrencyPairPrediction Identifying USD/JPY Trend Exhaustion Using Fibonacci Retracement Fibonacci retracement is a popular technical analysis tool used to identify potential trend exhaustion points in currency pairs like USD/JPY. Traders plot retracement levels (commonly 38.2%, 50%, and 61.8%) from a significant high to low (or vice versa) to spot areas where price might stall or reverse. When USD/JPY approaches these levels with weakening momentum (e.g., declining volume, bearish candlestick patterns, or divergence with indicators like RSI), it can signal trend exhaustion and a possible reversal or consolidation. These levels act as psychological zones of support/resistance where traders often anticipate changes in market direction.