JPY/INR Analysis
Morning Update : JPY/INR is trading near the 59 level and is moving towards a strong resistance zone on the weekly chart. Is it going to break out or reverse ?
The JPY/INR has been fluctuating around 59 levels for the past few days, and there will be a considerable resistance area between 59.50 and 59.70 zone in the spot chart. The chart attached indicates that the level of horizontal resistance and trendline resistance. Risk to Reward ratio is very favourable to take short entry here. We will go into greater detail during our discussion.
- JPY/INR bounced from the 55.00 zone and went straight up towards 59 levels.
- Based on the chart, it is possible that JPY/INR will experience a downward trend due to the strong resistance zone of 59.50-59.70 on the weekly chart.
- At 59.50-59.70, the level of confluence between horizontal resistance and trend line resistance is present.
JPY/INR has gone up from 55 odd levels to 59 so far, and has gained almost 400 paisa after receiving strong demand as YEN appreciated against the Dollar and Rupee. Price experienced a double bottom around the 55 zone, which we talked about in our previous JPY/INR analysis and it rebounded exactly from that point.
Take note of the confluence zone on the weekly chart by referring to the chart mentioned above. A confluence zone is a spot where two or more trading signals intersect, resulting in a strong buy or sell signal. The key to successful trading is to find a trade opportunity with high probability and low risk. JPY/INR is exactly providing us with such an opportunity at this currency juncture.
First, trendline resistance is coming around the 59.50-59.70 zone, followed by horizontal resistance around the same zone. This zone is a confluence zone of trendline resistance and horizontal resistance and gives an excellent Risk to Reward ratio to get entry in this short sell trade. This opportunity is highly lucrative as the risk is around 40-50 paise and the target is around 200 to 250 paise.
The chart attached shows that both horizontal resistance and trendline resistance are present at the same level, which is 59.50-59.70. After touching this zone, it's possible to see a downward movement, and the downside is open for 56.50 and 55 respectively.
Take a look at the support and resistance levels of JPY/INR on the weekly chart. All levels are in spot chart :
|
JPY/INR |
Support |
Resistance |
|
Level 1 |
56.50 |
59.50 |
|
Level 2 |
54.85 |
59.70 |