JPY-INR TIPS for 28 Aug. to 1 Sep. week 2017
Yen rupee future this week closed at 58.54 with loss. This was first losing week for yen after previous 2 weeks strong gains. This week yen rupee hit high at 58.9 while week low was 58.5 and closed near low with bearish outlook. Yen rupee traded in 0.4 rupee range and closed lower and we saw profit booking on global equity market recovery.
on weekly chart, yen trading above 5 and 20 weeks average levels which are at 58.4 and then 58.28 while on upside 59.05 is 50 weeks average and now given negative closing suggesting downtrend resumption after bounce back move . Yen rupee weekly chart, RSI level is 50 with fresh long term buy signal and MACD is negative with buy signal given at 57.5.
Yen rupee future opened strong for august series but profit booking hit lower levels and yen tested major support of 57.7 rupee on downside. After taking support at 57.7, yen seen strong buying on US-KOREA tension and achieved my august series first swing target of 58.9 and now after another downside move up to 58 rupee this week resumed uptrend and hit 58.9 target again and now closed at 58.54 with bearish indicators and oscillators pattern suggesting downside targets of 58 and then 57.1.
On daily chart, prices are now slipped below 5 days average of 58.65 and heading lower towards 58.3 which 20 days average level and 58.1 which is 50 days average level and downside support zones. Daily chart, RSI is 55 with fresh sell signal and MACD is above zero and topped out pattern.
From long term view, yen rupee future opened bearish in 2017 and in last 7 months yen closed with losses in 4 months which reflect overall investors sentiment towards yen. Yen still weak from long term view below 60.7 rupee level. on downside 56.5 was first bearish target which got achieved now below it next long term support as well as target will comes around 53.
But now 59 is looks like top and major hurdle and if fails to cross this level then expect downside up to 57 to 55 with sell off move.