USD/JPY Analysis

• 27 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, representing a significant recovery from 140.00 on the weekly chart. It could grow quickly, breaking through the 152.00 zone and possibly reaching the 160 zone after the breakout. Buying the USD/JPY at a discount and holding until 143.50-144.00 is a good investment strategy. A decline in the pair suggests a buying opportunity. As previously noted, the USD/JPY is gaining, accounting for 13.5% of the Dollar Index's weight. As a result, if the DXY continues to rise, the USD/JPY is likely to follow suit.

• With increasing momentum, the USD/JPY rose from 140.50 to 151.50.
• The chart below depicts how the USD/JPY pair surged, with a significant demand spike resulting from the trendline and horizontal support.
• and the DXY has found support between 100.50 and 100.80.

The USD/JPY is in a buy-on-dips pattern, as shown in the chart above, with demand seen between 143.50 and 144.00. The zone in the graphic above represents the intersection of the trendline with the horizontal support. There is potential for upward action at 152.00-152.50 or higher.

Currently, the USD/JPY pair is being traded with a buy on dip strategy. It is critical to buy with a close stop loss of 143.50-144.00. The target price should be between 152.00 and 152.50, or possibly higher, with a stop loss just around 143.50. Any fall in the USD/JPY implies 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.