USD/JPY Analysis

• 23 February, 2024 Ruchit Thakur

USD/JPY Analysis

Evening Update : Will the USD/JPY increase or decline more after recovering from 140.00?

The USD/JPY is currently trading between 150.50 and 151.00, indicating a significant recovery from 140.00, according to the weekly chart. It might grow significantly, possibly reaching 152.00 zones and beyond. It is a solid investment strategy to buy the USD/JPY at a discount and hold it until it reaches 143.50-144. Any decrease in the pair represents a purchasing opportunity. As we noted in our previous research, the USD/JPY is strengthening and now accounts for 13.5% of the weight of the Dollar Index. As a result, if the DXY continues to rise, the USD/JPY is likely to follow suit.
 

• With rising momentum, the USD/JPY rose from 140.50 to 150.50.
• The chart below depicts how the USD/JPY pair rose, accompanied by a significant demand spike from the trendline and horizontal support.
• The USD/JPY rate may rise further since price demand is strong on the weekly chart and the DXY has established support in the 100.50-100.80 range.

The USD/JPY is in a buy-on-dips pattern, as shown in the chart above, with demand plainly visible between 143.50 and 144.00. The zone in the chart above represents the confluence of the trendline and horizontal support. There is a possibility for upward movement at 152.00 and 152.50. 

Currently, the USD/JPY pair is being traded employing a buy on dip strategy. It is critical to buy with a tight stop loss between 143.50 and 144.00. The objectives should be around 152.00 and 152.50, and the stop loss should be just below 143.50. Any decrease in the USD/JPY suggests a buying opportunity, therefore look for more dips in the 143.50-144.00 range to buy this pair and optimize your upside potential.

Please study the support and resistance levels on the weekly USD/JPY chart. Spot charts are used to depict each stage.