JPY/INR Analysis
Morning update: The JPY/INR pair is trading exactly at 55.30. Will it reverse course or continue to fall ?
As previously said, the JPY/INR encountered strong resistance above 59.50 before declining as expected. The trendline and horizontal formed strong supply and resistance as the #JPYINR fell from 59.50 to 55.00.
- The JPY/INR pair entered supply at 59.00, up from 55.00, and broke.
- The weekly chart's critical resistance support zone of 54.50-55.00 indicates that JPY/INR may fall back, creating a long opportunity.
- The JPY/INR pair may rebound from its current level, with a pullback to 57.50-58.00.
Please see the accompanying chart, which indicates an increase in demand as the YEN's value increased relative to the US dollar and the rupee. As a result, the JPY/INR gained over 400 paisas, rising from 55 odd levels to 59.00-59.50. As we mentioned in our previous JPY/INR analysis, the price formed a double bottom around 54.80.55.00 before rising again.
There was horizontal resistance between 59.50 and 59.70, which is the starting trendline resistance level for the target. This zone had a high risk-reward ratio for the short sell strategy since it was where a trendline and horizontal resistance crossed. We proposed a short sell trade at the time, and the JPY/INR fell from 59.50 to 55.00 odd levels.
The weekly chart of JPY/INR shows that the pair is once again approaching the demand zone of 54.50-55.00 and building a triple bottom.
The triple bottom chart pattern often occurs after a prolonged slump in which bears have control of the market. While the first bottom could simply represent regular price fluctuation, the second bottom indicates that the bulls are gaining momentum and preparing for a probable reversal. The third bottom suggests that there is significant support in place, and bears may capitulate if the price breaches resistance levels.
As a result, we should expect a bounce in JPY/INR from its current level, with the pair likely going up to the 57.50-58.00 range during this move.
Please see the weekly chart to determine the levels of JPY/INR support and resistance. Spot charts are used to represent each level.
|
JPY/INR |
Support |
Resistance |
|
Level 1 |
55.00 |
57.50 |
|
Level 2 |
54.50 |
58.00 |