JPY/INR Analysis

• 18 January, 2024 Ruchit Thakur

JPY/INR Analysis

Morning Update: JPY/INR pair trading around 56 levels, will it crack further from its current zone or reverse ?

As we noted in our previous research, the JPY/INR reached a significant resistance zone of 59.50 before falling dramatically, as demonstrated. From 55.00 to 59.50, where it encountered substantial supply and significant resistance from the trendline and horizontal, the #JPYINR sank brilliantly.

• Following a big advance from the 55.00 zone, the JPY/INR entered supply at 59.00 levels and cracked. 
• On the weekly chart, the substantial resistance zone of 59.50-59.70 suggests that JPY/INR may continue to trend downward, and any pullback could be a good chance to short.
• According to the chart, the JPY/INR pair is in a sell on rise mode, and a sharp rise indicates a selling opportunity.

Please see the chart above, which illustrates that there was high demand when the YEN's value increased relative to the US dollar and the rupee. As a result, the JPY/INR rose from 55.00 odd levels to 59.00, gaining nearly 400 paisa. As we mentioned in our previous JPY/INR analysis, the price formed a double bottom around 55.00, from which it precisely rebounded.

Examine the chart above and identify the weekly chart's confluence zone. A confluence zone is where two or more trading indications combine to provide a strong buy or sell signal. To trade effectively, you must discover a trade opportunity with a high probability and low risk.

The initial trendline resistance area to approach is the 59.50-59.70 zone, which also contains horizontal resistance. This zone, which indicated the junction of trendline and horizontal resistance, offered a good risk-reward ratio for pursuing the short sell strategy. This was an exceptionally profitable opportunity, with a target of 200-250 paise and a risk of around 40-50 paise, as previously indicated. 

The JPY/INR may now face a slight pullback as it trades near the support zone, and it may even rise to the 58.50-59.00 range again, but this will only be a shorting opportunity. The narrow support zone of 55.20-55.50 may see further rises in JPY/INR, but the broader perspective has not changed, and any increase in price signals a potential sell opportunity for JPY/INR in the future. The downside remains available for the 55.20 and 54.80 zones, respectively.  

Please refer to the weekly chart to identify the JPY/INR support and resistance levels. Every level is represented by a spot chart.