Fibonacci Retracements Analysis 07.04.2020 (EURUSD, USDJPY)
EURUSD, “Euro vs US Dollar”
In the H4 chart, EURUSD slowed down its sideways movement, which may be considered as a correction of the previous ascending wave. The support is still the low at 1.0635. If the bulls are strong enough to break 38.2% and 50.0% fibo at 1.1370 and 1.1595 respectively, the long-term tendency may reverse.
As we can see in the H1 chart, the convergence forced the pair to stop the descending correction at 76.0% (1.0758) and start a new growth. The key target is the local high at 1.1147. In order to reach it, the instrument will have to break 23.6%, 38.2%, 50.0%, 61.8%, and 76.0% fibo at 1.0857, 1.0913, 1.0959, 1.1002, and 1.1055 respectively.
USDJPY, “US Dollar vs. Japanese Yen”
As we can see in the H4 chart, after completing the descending correction at 38.2% fibo, USDJPY is trying to start a new rising wave. The upside targets may be the local and key highs at 111.71 and 112.23 respectively. However, if the pair fails to rise, the next descending wave will trade towards 50.0%, 61.8%, and 76.0% fibo at 106.44, 105.22, and 103.70 respectively or even lower, the post-correctional extension area between 138.2% and 161.8% fibo between 101.48 and 99.66 respectively.
In the H1 chart, the convergence made the price start a new rising tendency which has already reached 50.0% fibo. The next upside targets may be 61.8% and 76.0% fibo at 109.88 and 110.56 respectively. If the pair breaks the low at 106.91, the instrument may resume its mid-term decline.