JPY/INR Analysis

• 02 April, 2024 Ruchit Thakur

JPY/INR Analysis

Morning update: The JPY/INR pair is trading exactly between 54.80 and 55.00. Will it bounce and smash the support zone ?

As previously said, the JPY/INR faced 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 entered supply at 59.00, up from 55.00, before breaking. 
• The weekly chart's important support zone of 54.50-55.00 shows that JPY/INR could provide a long-term opportunity.
• The JPY/INR pair may recover from its current levels, dipping 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 55.00 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.

Horizontal resistance was present 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 weekly JPY/INR chart shows the pair returning to the demand zone of 54.50-55.00 while completing 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 JPY/INR bounce from its current level, with the pair potentially rising to 57.50-58.00 during this period.

Please see the weekly chart to determine the levels of JPY/INR support and resistance. Spot charts are used to represent each level.