Fibonacci Retracements Analysis 22.12.2020 (EURUSD, USDJPY)

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, EURUSD is forming a new descending impulse within the post-correctional extension area between 138.2% and 161.8% fibo at 1.2167 and 1.2262 respectively after a divergence on MACD. The key downside targets may be 23.6%, 38.2%, and 50.0% fibo at 1.2115, 1.2018, and 1.1937 respectively. If the price breaks the high at 1.2273, the asset may continue growing to reach the long-term fractal high at 1.2555.

The H1 chart shows both potential downside and upside targets. On one hand, if the price breaks the high at 1.2273, it may move upwards to reach the post-correctional extension area between 138.2% and 161.8% fibo at 1.2327 and 1.2362 respectively. On the other hand, if EURUSD breaks the local low at 1.2130 again, the asset may continue trading downwards.

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, after completing another pullback at 23.6% fibo and breaking the low at 103.17, USDJPY has started a new correction to the upside. However, the main scenario remains the same and hints at further decline towards the fractal low at 101.18.

In the H1 chart, after breaking 23.6% fibo, the correctional uptrend has failed to reach 38.2% fibo at 103.95. However, if the current decline breaks the low at 102.87, the downtrend will continue. At the same time, one shouldn’t exclude a possibility of a new rising impulse to reach 38.2% and 50.0% fibo at 104.28 and 106.61 respectively.