USD/JPY Analysis

• 11 March, 2024 Ruchit Thakur

USD/JPY Analysis

Evening Update: Will the USD/JPY decrease or rise after falling from 151.00 ?

The USD/JPY is currently trading between 146.50 and 147.00, indicating a considerable recovery from 140.00 on the weekly chart. It could expand significantly, possibly reaching 152.00 zones and beyond. Buying the USD/JPY at a discount and holding it until 143.50-144 is a sound investing plan. Any fall in the pair indicates a buying opportunity. As we previously stated, the USD/JPY is gaining 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 will most certainly follow suit.
 

• With gaining momentum, the USD/JPY increased from 140.50 to 150.50.
• The chart below shows how the USD/JPY pair climbed, with a substantial demand spike from the trendline and horizontal support.
• The USD/JPY rate may rise higher since price demand is robust on the weekly chart and the DXY has found support in the 100.50–100.80 zone.

The USD/JPY is in a buy-on-dips pattern, as illustrated by the chart above, with demand clearly visible between 143.50 and 144.00. The zone on the chart above represents the intersection of the trendline and horizontal support. There is a probability of upward movement at 152.00, 152.50, and beyond.

Currently, the USD/JPY pair is traded using a purchase on dip strategy. It is crucial to purchase with a tight stop loss of 143.50 to 144.00. The objectives should be between 152.00 and 152.50, with a stop loss close below 143.50. Any fall in the USD/JPY signals a buying opportunity; so, look for more dips in the 143.50-144.00 zone to buy this pair and 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.