Foreign Exchange Online - Masakazu Sato's Practical Trading Techniques | Techno & Fundamentals Analysis to Predict the Future of the 3 Major Currencies [This Month's Theme | Exploring Target Rates for Major Currencies into Spring with Fibonacci Retrac

Since the inauguration of the U.S. president on January 20, 2021, a full-fledged Biden era has begun. For the time being, there will be no one-way trends like the Trump surge era, and each currency pair is likely to move within the past price ranges. In such times, Fibonacci retracement is useful. Let’s explore the target highs and lows for each currency pair using the golden ratio of past gains and losses.

*This article is a reprint and editing of an article from FX攻略.com, March 2021 issue. Please note that the market information written in the body is different from the current market.

Masakazu Sato Profile

Sato Masakazu. After working at a domestic bank, he joined the French Paribas Bank (now BNP Paribas). He has served as Interbank Chief Dealer, Head of Funds, Senior Manager, and other positions. Subsequently, he became Senior Analyst at FX Online, which boasted the highest annual trading volume. He has been involved in the world of foreign exchange for over 20 years. He also appears on Radio NIKKEI “Stock Complete Live Commentary! Stock Up↑,” Stock Voice “Market Wide – Foreign Exchange Information,” and regularly provides market information on Yahoo! Finance.

If the mid-103-yen range is broken, a dollar around 100 yen could stabilize. Upside target around 109 yen

In recent years, financial markets around year-end and New Year’s have shown sudden fluctuations. In 2020, news of the coronavirus outbreak in Wuhan, China, gradually spread from the beginning of the year, leading to stock market crashes and rapid currency fluctuations from February to March.

In 2021, with the third wave of COVID-19 infections intensifying from the end of the year, the weakness in non-farm payrolls in the December US employment report, and yet the US stock market reaching record highs, it wouldn’t be surprising if there is a bit of volatility at the start of the year. Before Joe Biden becomes the 46th president on January 20, there may already have been significant market fluctuations before this manuscript is published.

Therefore, this time we will use Fibonacci retracement (hereafter abbreviated as “FR”) to calculate predicted market volatility and target highs and lows using the golden ratio, and translate the 2021 FX market movements into concrete exchange rates for a forward-looking forecast.