USD/JPY Analysis

• 04 January, 2024 Ruchit Thakur

USD/JPY Analysis

Evening Update: The USD/JPY recovered from the 140 area; will it continue to rise or fall ?

The weekly chart shows that the USD/JPY has recovered well from the 140 area and is presently trading between 144.20-144.50 zone. It may move higher, possibly reaching the 145.50 and 152.00 zones, respectively. The USD/JPY is a buy on dips candidate, and keep buying till the 137.00-138.00 zone, any down move presents a buying opportunity in USD/JPY. The USD/JPY is rising and is weighted 13.5% in the Dollar Index, as we observed in our previous analysis. Thus, there's a higher chance that USD/JPY will advance in tandem with the Dollar Index if the DXY keeps heading higher.

• The USD/JPY strengthened and moved up from the 140.50 to 144.50 area.
• The USD/JPY pair went higher as shown in the chart below, showing a strong demand surge from the trendline and horizontal support.
• Given that the weekly chart indicates continued price demand and that the DXY is rising after finding support in the 100.50-100.80 zone, we may expect a further increase in the USD/JPY price.

Check out the chart above to see that there is clear demand for USD/JPY in the 137.00–138.00 range, and that USD/JPY is in a buy on dips mode. This zone, as shown in the chart above, represents the intersection of horizontal support with trendline support. Upside is available for 145.50 and 152.00, correspondingly. 

The USD/JPY pair is in a buy on dips mode. If it goes into the 137.00–138.00 zone again, it is a must-buy level with strict stop loss. The stop loss should be placed slightly below the 137 zone, with targets of 145.50 and 152, respectively.

Please check the support and resistance level of USD/JPY on the weekly chart. All levels are in spot chart :