USD/JPY Analysis

• 29 January, 2024 Ruchit Thakur

USD/JPY Analysis

After recovering from the 140.00 level, will the USD/JPY continue to increase or fall ?

The weekly chart shows that the USD/JPY has recovered significantly from 140.00 and is now trading in the 148.00 range. It could rise considerably higher, potentially reaching 149.00 and 152.00 zones, respectively. Buying the USD/JPY at a discount and holding it until it reaches 137.00-138.00 is a sound investment strategy. Any dip in the pair represents an opportunity to buy. As we saw in our previous study, the USD/JPY is rising and now accounts for 13.5% of the Dollar Index weight. As a result, if the DXY continues to rise, the USD/JPY is more likely to move in lockstep with it.

• As it gained momentum, the USD/JPY rose from 140.50 to 148.00.
• The USD/JPY pair rose, as evidenced by the chart below, which also shows a significant demand spike from the trendline and horizontal support.
• Given that price demand remains on the weekly chart and the DXY is increasing after establishing support in the 100.50-100.80 zone, we may see more increases in the USD/JPY price.

The previous chart shows that the USD/JPY is in a buy on dips pattern, with demand plainly seen between 137.00 and 138.00. The zone in the chart above illustrates the intersection of trendline and horizontal support. Upside is available for 149.00-149.50 and 152.50, respectively. 

For the USD/JPY pair, the purchase on dips strategy is in force. Buying between 137.00 and 138.00 with a tight stop loss is critical. The stop loss should be put just below the 137.00 zone, with goals of about 149.50 and 152, respectively, For USD/JPY, every fall is a buying opportunity, and look for more dips around the 140 level to buy this pair for additional upside goals.

Please consider the USD/JPY weekly chart's support and resistance levels. Each level is displayed on a spot chart.