JPY/INR Analysis

• 14 March, 2024 Ruchit Thakur

JPY/INR Analysis

Morning update: The JPY/INR pair is currently trading at exactly 56.00. Will it reverse or continue to fall ?

As previously said, the JPY/INR had strong resistance above 59.50 before falling 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 moved into supply at 59.00, up from 55.00, before breaking. 
• The weekly chart's crucial resistance support zone of 54.50-55.00 indicates that JPY/INR may fall back, creating a long opportunity.
• The JPY/INR pair may recover from its present level, with a dip to 57.50-58.00.

Please see the accompanying chart, which demonstrates an increase in demand when the YEN's value grew relative to the US dollar and the rupee. As a result, the JPY/INR increased by over 400 paisas, from 55 odd levels to 59.00-59.50. As we discussed in our previous JPY/INR analysis, the price reached a double bottom at 54.80.55.00 before rising again.

There was horizontal resistance between 59.50 and 59.70, the target's initial trendline resistance level. This zone had a high risk-reward ratio for the short sell strategy since it was where a trendline and horizontal resistance met. We proposed a short sell trade at the time, and the JPY/INR fell from 59.50 to 55.00 odd levels.

The JPY/INR weekly chart reveals that the pair was once again approaching the demand zone of 54.50-55.00 while forming 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 may see a more bounce in JPY/INR from its current level, with the pair potentially climbing to 57.50-58.00 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.