USD/JPY Analysis

• 22 March, 2024 Ruchit Thakur

USD/JPY Analysis

Evening Update: Will the USD/JPY breakout or plummet after reaching 152.00?

The USD/JPY is currently trading between 151.50-152.00, a big improvement from 140.00 on the weekly chart. It may grow swiftly, breaking the 152.00 zone and possibly reaching the 160 zone following the breakout. Buying the USD/JPY at a discount and holding until 143.50-144.00 is a sound investing plan. A decrease in the pair indicates a purchasing opportunity. As previously stated, 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 will most likely follow suit.
 

• With growing momentum, the USD/JPY increased from 140.50 to 151.50.
• The chart below shows how the USD/JPY pair rose, with a substantial demand spike caused by the trendline and horizontal support.
• The USD/JPY rate may rise further as price demand on the weekly chart remains strong, 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 in the chart above, with demand visible between 143.50 and 144.00. The zone in the figure above denotes the intersection of the trendline and horizontal support. There is a possibility of upward movement at 152.00-152.50 or higher.

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