The USD/JPY nears its 76.4% Fibo

The Fibonacci retracement levels that have the highest probability of acting as support or resistance are the 61.8% and the 76.4%. When the price of an asset retraces a 61.8% of a drop or a rally, it usually stalls at that level and tries to change its direction, but if it breaks that zone and continues with its main trend, it will probably reach the 76.4% Fibo and at that zone it may change its trend. However, we must have in mind that the price may even break all of those levels, just as it does at any support or resistance zone. On the daily chart of the USD/JPY we can see that the pair suffered a strong drop from the 115.50 level to the 108.00 zone. From the 108.00 zone the pair starts to retrace to the upside as the Dollar gains ground versus the Yen amid a rise in risk appetite. Once it got to the 61.8% Fibo at the 112.67 level, the bullish momentum stalls momentarily, but then it continues rising. At the moment the pair is trying to visit the 76.4% Fibo at the 113.76 level and it is possible for that level to act as resistance.