USD/JPY Analysis

• 08 February, 2024 Ruchit Thakur

USD/JPY Analysis

After recovering from 140.00, will the USD/JPY continue to rise 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 might rise dramatically, 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 creates an opportunity to purchase. As we noted in our previous study, the USD/JPY is increasing and now accounts for 13.5% of the Dollar Index weight. As a result, if the DXY continues to rise, the USD/JPY will probably follow suit.

• As it gained traction, the USD/JPY rose from 140.50 to 148.00.
• The USD/JPY pair rose, as illustrated in the chart below, with a significant demand spike from the trendline and horizontal support.
• Given that price demand is strong on the weekly chart and the DXY is increasing after finding support in the 100.50-100.80 zone, we may see more increases in the USD/JPY rate.

The previous chart shows that the USD/JPY is in a buy-on-dips pattern, with demand evident between 137.00 and 138.00. The zone in the above chart denotes the intersection of the trendline and horizontal support. The upside is possible at 149.00-149.50 and 152.50, respectively. 

The USD/JPY pair is currently trading with a purchase on dips strategy. Purchasing between 137.00 and 138.00 with a tight stop loss is critical. The stop loss should be set just below 137.00, with targets of roughly 149.50 and 152, respectively. Every decrease in USD/JPY represents a buying opportunity, and look for more dips around the 140 level to buy this pair for more upside potential.

Please look at the weekly USD/JPY chart's support and resistance levels. Each level is represented by a spot chart.