USD/JPY Analysis

• 12 April, 2024 Ruchit Thakur

USD/JPY Analysis

Evening Update: USD/JPY broke out of its long-term ascending triangle pattern and is poised to surge towards the 177 zone. 

The USD/JPY is currently trading between 153.00 and 153.50, following a significant breakout from its long-awaited rising triangle. It may increase swiftly from here, breaking through the 152.00 zone and possibly hitting the 160 zone following the breakout. Buying the USD/JPY at a discount and holding until 151.00-151.50 is a sound trading plan. A decrease in the pair indicates a buying opportunity. As previously stated, the USD/JPY is rising and accounts for 13.5% of the Dollar Index's weight. As a result, if the DXY continues to rise, the USD/JPY will most certainly follow suit.
 

• With growing momentum, the USD/JPY increased from 151.50 to 153.50.
• The chart below shows how the USD/JPY pair rose, with a substantial demand spike caused by the trendline and horizontal resistance.
• DXY has found support between 100.50 and 100.80, bounced, and is now going higher.

The USD/JPY is in a buy-on-dips pattern, as illustrated in the chart above, with demand ranging from 151.00 to 151.50. The zone in the figure above depicts an ascending triangle pattern, and USD/JPY broke out of the 152.00 zone that has been on the chart for quite some time. There is a great deal of upside potential towards the 160.00 level and beyond.

Currently, the USD/JPY pair is traded using a purchase on dip strategy. It is crucial to buy with a tight stop loss of 151.00-151.50, right below the breakthrough zone of 152.00. The goal price should be between 160.00 and 162.00, or potentially higher, with a stop loss of approximately 151.00. Any decline in the USD/JPY indicates a buying opportunity; so, look for more dips in the range to 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.