USD/JPY Analysis

• 15 February, 2024 Ruchit Thakur

USD/JPY Analysis

Will there be further rise or decrease in the USD/JPY when it recovers from 140.00?

The USD/JPY is currently trading in the 149.50–150.00 region, indicating a considerable recovery from 140.00, according to the weekly chart. It could increase significantly, possibly reaching 152.00 and 152.50 zones, in that order. It is a wise investing plan to purchase the USD/JPY at a discount and hold it until it hits 143.50-144.00. Any decline in the pair presents a buying opportunity. As we observed in our earlier analysis, the USD/JPY is rising and currently makes up 13.5% of the weight of the Dollar Index. Therefore, if the DXY keeps rising, the USD/JPY would most likely do the same.

• With increasing momentum, the USD/JPY increased from 140.50 to 150.00.
• The chart below shows how the USD/JPY pair increased, accompanied by a notable demand spike from the trendline and horizontal support.
• We might witness additional increases in the USD/JPY rate because price demand is robust on the weekly chart and the DXY is rising after establishing support in the 100.50–100.80 region.

The USD/JPY is in a buy-on-dips pattern, as seen by the preceding chart, with demand clearly visible between 143.50 and 144.00. The junction of the trendline and horizontal support is indicated by the zone in the chart above. At 152.00 and 152.50, respectively, there is potential for upside. 

Right now, the USD/JPY pair is being traded using a buy on dips strategy. It is important to purchase with a tight stop loss between 143.50 and 144.00. The goals should be approximately 152.00 and 152.50, respectively, and the stop loss should be placed just below 143.50. Any decline in the USD/JPY indicates a buying opportunity, so keep an eye out for additional dips in the 143.50-144.00 range to purchase this pair in order to maximize your upside potential.

Please examine the support and resistance levels on the weekly USD/JPY chart. Spot charts are used to represent each level.