USD/JPY Analysis and Path Ahead
Evening Update: Will the USD/JPY keep rising or falling after it bounced back from the 140.00 region ?
The USD/JPY has made a strong recovery from the 140.00 region, as seen by the weekly chart, and is currently trading in the 145.50–146.00 range. It might rise further, perhaps hitting the 149.00 and 152.00 zones, in that order. The USD/JPY is a good investment to buy on dips and hold onto until it reaches the 137.00–138.00 range. Any decline in the pair offers a chance to purchase. We saw in our earlier study that the USD/JPY is growing and is weighted 13.5% in the Dollar Index. Thus, if the DXY continues to rise, there's a greater likelihood that USD/JPY would rise in lockstep with the Dollar Index.
- The USD/JPY rose from the 140.50 to 145.50 range as it gained momentum.
- The chart below illustrates how the USD/JPY pair increased, demonstrating a robust demand spike from the trendline and horizontal support.
- We may anticipate a further increase in the price of the USD/JPY given that the weekly chart shows ongoing price demand and that the DXY is increasing after finding support in the 100.50–100.80 zone.
Examine the preceding chart to observe that the USD/JPY is in a buy on dips mode and that there is evident demand in the 137.00–138.00 zone. The junction of horizontal support and trendline support is shown by this zone in the preceding chart. Upside is offered for 149.00–149.50 and 152.00, respectively.
Buy on dips is the strategy for the USD/JPY pair. It is imperative to purchase in the 137.00–138.00 range with a firm stop loss. The stop loss should be positioned with objectives around 149.50 and 152.00, respectively, and just below the 137.00 zone.
Please examine the support and resistance level of USD/JPY on the weekly chart. Every level is shown in a spot chart.
USD/JPY |
Support |
Resistance |
Level 1 |
138.00 |
149.50 |
Level 2 |
137.00 |
152.00 |