USDJPY POTENTIAL RETRACE if we cannot close above 108.720

Potential retrace of USDJPY if we cannot close a daily candle above 108.720. We have been bouncing below this level a lot lately, and it looks like the momentum is running out. Can see some Bear Hammers and Doji's.

Retrace levels to look out for are the .618, .5, and even possibly the .382.

Again, 108.72 is critical level, 108.610 seems to be the local support.

Waiting for further price action to develop before I change my Bias.

Please feel free to like or comment different ideas if you have them! I have just recently started trading and I am looking for some collaboration and validation of whether or not I am using tools correctly and Identifying trends.

Comment:

Hitting our first bit of resistance here at the .786 Fib level. Let’s see if we will continue down or bounce.

I am not taking any trade, just practicing and following price movements.

Comment:

Well, we bounced at the .768 fib level and got our daily close above the local resistance that was forming at 108.72. After a bit more bouncing around, finally broke to the upside.

I was correct about the retrace, but I expected it to blow past the .768 level to lower support levels, because there was much stronger support at .618 and .5 and .768 seemed weak. Will continue to follow price, but RSI seems healthy again and we look to be resuming the push upward.

Comment:

Looks like US Fed rate cut really hurt the USD. Is this price action a case of buy the Rumor and sell the News? Major top wick on the 1 Day if this price action plays out this way

Comment:

CRAZY RETRACE... think it’s a combo of price action and news. I was correct on my gut feelings, but I think I had my key levels a little too close to current price. Didn’t leave enough room for moves. If I took a trade I would have probably cashed out at the .718 level and missed the huge retrace.