JPY/INR Analysis
Morning update: The JPY/INR pair is trading exactly around 54.80-55.00. Will it rebound back and shatter the support zone ?
As previously said, the JPY/INR encountered firm resistance above 59.50 before falling as expected. The trendline and horizontal created strong supply and resistance as the #JPYINR declined from 59.50 to 55.00.
- The JPY/INR pair went into supply at 59.00, up from 55.00, before breaking.
- The weekly chart's critical support zone of 54.50-55.00 suggests that JPY/INR could present a long opportunity.
- The JPY/INR pair may recover from its current levels, with a dip to 57.50-58.00.
Please note the accompanying chart, which shows a rise in demand when the YEN's value rose compared to the US dollar and the rupee. As a result, the JPY/INR rose by more than 400 paisas, from 55.00 odd levels to 59.00-59.50. As we mentioned in our previous JPY/INR analysis, the price hit a double bottom at 54.80.55.00 before rising again.
Horizontal resistance existed 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 intersected. We suggested a short sell trade at the time, and the JPY/INR plummeted from 59.50 to 55.00 odd levels.
The weekly JPY/INR chart shows that the pair is once again approaching the demand zone of 54.50-55.00 while forming 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 witness a rebound in JPY/INR from its current level, with the pair potentially rising to 57.50-58.00 over this period.
Please refer to the weekly chart to find the levels of JPY/INR support and resistance. Spot charts are used to depict each stage.
JPY/INR |
Support |
Resistance |
Level 1 |
55.00 |
57.50 |
Level 2 |
54.50 |
58.00 |