USD/JPY Analysis

• 18 March, 2024 Ruchit Thakur

USD/JPY Analysis

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

The USD/JPY is currently trading between 149.00 and 149.50, representing a significant recovery from 140.00 on the weekly chart. It might grow rapidly, potentially reaching 152.00-152.00 zones and beyond. Buying the USD/JPY at a discount and holding it till 143.50-144 is a good investment strategy. Any decline in the pair suggests a buying opportunity. As previously noted, the USD/JPY is rising and now contributes 13.5% of the weight of the Dollar Index. As a result, if the DXY continues to increase, the USD/JPY will almost probably follow suit.

• With increasing momentum, the USD/JPY rose from 140.50 to 151.50.
• The chart below depicts how the USD/JPY pair ascended, with a significant demand spike resulting from the trendline and horizontal support.
• The USD/JPY rate may rise further as price demand is strong on the weekly chart and the DXY has found 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 evident between 143.50 and 144.00. The zone in the chart above represents the intersection of the trendline and horizontal support. There is a chance of upward movement at 152.00-152.50 and higher.

Currently, the USD/JPY pair is traded employing a buy on dips strategy. It is critical to buy with a tight stop loss of 143.50-144.00. The target price should be between 152.00 and 152.50, with a stop loss close below 143.50. Any decline in the USD/JPY indicates 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.