Mar 08 2019

JPYINR- Bulls likely to activate

We notice that JPYINR pair is trading in uptrend and looks like it will continue the trend. Here JPYINR is trading near to the support of trend line and is likely to revive from initial levels of 63.07. This trend line acted as support earlier, starting from January 2018 and then in December 2018 when prices took support on this trend line second time. Now in March 2019, it is again trading near the same support line.

Analyzing technical studies, we inferred that Bollinger band price action is trading at lower band which indicates that price is in oversold situation and likely to might move upward. The nature of Bollinger Band tells us that price usually moves between upper band and lower band. Relative Strength Index of 14 Period is at 37 and Stochastic slow is at 11 (ready to give bullish crossover signal). All these indicators, indicating price action is in oversold territory or near to the zone.

We see rupee was on appreciation mode from first week of February 2019 which can be a valid correction to take support for buying again in the pair.

Forecast- we expect bulls to take charge from initial levels (63.07) for the target of 63.80. Any close below 63.00 will negate the above view.