Fibonacci Retracements Analysis 22.05.2018 (EURUSD, USDJPY)
EURUSD, “Euro vs US Dollar”
As we can see in the H4 chart, after reaching the post-correctional extension area, EURUSD was forced by the convergence to reverse and start a new ascending movement. The first target of this uptrend may be the retracements of 23.6%, 38.2% and 50.0% at 1.1880, 1.1981, and 1.2065 respectively.
In the H1 chart, the convergence made the pair reverse and resume growing; this correctional uptrend has already reached the retracement of 38.2%. The next targets may be the retracements of 50.0% and 61.8% at 1.1856 and 1.1888 respectively.
USDJPY, “US Dollar vs. Japanese Yen”
In the H4 chart, the divergence is being formed, which may indicate a possible pullback. The targets of this pullback may be the retracements of 23.6%, 38.2%, and 50.0% at 110.32, 109.68, and 109.13 respectively. However, if the price breaks the high at 111.39, the instrument may continue growing to reach the retracement of 261.8% at 112.29.
As we can see in the H1 chart, the divergence made USDJPY start a new correction to the downside, which has already reached the retracement of 23.6%. The next targets of this correction may be the retracements of 38.2%, 50.0%, and 61.8% at 110.54, 110.28, and 110.01 respectively.
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