Instructor's Response:
You have the right idea on implementing Fib levels...good work.
Regarding a short position on this USDJPY pair however, take a look at the second chart below...
A trader must be mindful that the pair has broken above trendline resistance (thick black line) and also has closed above the 200 period SMA (green line). While the pair could indeed trade back to the downside as you suggest, these two occurrences have provided a more bullish bias to the pair going forward.
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