Amidst a prevailing downtrend scenario in the USD/JPY pair, we have observed a notable pullback in price action, specifically within the 61.8% and 50% Fibonacci retracement levels. This pullback is indicative of a temporary upward correction within the broader downtrend.
However, a closer analysis of the price movement reveals a clear pattern of the market resuming its main downtrend direction. The recent pushdown confirms the strength of the bearish momentum and suggests further potential for downward movement.
Given these observations, we are actively seeking a short position in the USD/JPY pair, anticipating a continuation of the downtrend. The pullback to the Fibonacci retracement areas provides a favorable entry point for this short position, as it aligns with the broader bearish market sentiment.
Our approach is grounded in technical analysis, utilizing Fibonacci retracement levels as key reference points to identify potential reversal areas within the downtrend. By taking a short position in this scenario, we aim to capitalize on the expected downward movement of the USD/JPY pair in line with the prevailing market trend. As always, risk management will be a crucial aspect of our strategy to safeguard against unexpected price fluctuations.