USD/JPY Reaches Key 88.6% Fibonacci Decision Zone

USD/JPY

4 hour

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Source: Admiral Markets MT5 with MT5SE Add-on USD/JPY motive wave – 21 September 2018 at 4:00 AM GMT

The USDJPY stayed in the bullish channel and broke above the resistance trend line (dotted orange) and the 78.6% Fibonacci retracement level for a continuation higher. The price is now approaching the next key decision zone, which is the 88.6% Fibonacci retracement level. The USDJPY currency pair will either make a bearish bounce or a bullish breakout.

1 hour

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Source: Admiral Markets MT5 with MT5SE Add-on USD/JPY motive wave – 21 September 2018 at 4:00 AM GMT

The USD/JPY breakout has extended the uptrend. The price could still be in a corrective wave X (pink) if it bounces at the deep Fibonacci level. A break above the 88.6% Fib could make the wave X pattern less likely however.