JPYINR pair is broadly moving between 61.90 – Axis Securities


The traders have been swinging between a possible recession and a FED pivot. This has kept the US bond yields under pressure for some time now. Since the past couple of sessions, the short end US bond yields have been hovering around the 4%, After a long weekend and a fair few data releases, the USDINR pair opened slightly lower, when compared to Thursday close. In the first few minutes the pair drifter lower and printed a low of 81.85, from where we saw strong buying which helped the pair recapture the 82.00 mark on closing basis. On Monday the pair formed a strong bullish candle after bouncing off around the 81.80, buying interest near lower levels. The RSI plotted on the daily chart can be seen forming a bullish hinge near the oversold level, which points towards presence of bullish momentum in the pair. Technically, we expect the pair to find support near the 81.80 mark and on the upside the immediate resistance is placed near the 82.30 – 82.50 zone



The European markets were shut on occasion of Easter Monday, so there were no major data releases or news flow from the Euro Area. Most of the moves that were saw in the EURUSD and the EURINR were a result of the traders scalping or speculating. The EURINR opened on a weaker note and tested a low of 89.26 which is placed closer to the previous session low in the first half of the trading session. The pair was quick to bounce off the low and move higher towards the 89.60 zone. On the daily chart the EURINR pair has formed a bullish candle, with a lower wick, which suggests buying near the 89.20 zone. The RSI plotted on the daily chart can be seen moving higher towards the over bought level, indicating presence of bullish momentum in the pair. Technically, the pair could face resistance near the 90.00-90.30 zone. On the downside we might see the pair find immediate support near the 89.20 level



The bond Yields hovering around the 4% mark and the inaugural session of the new BoJ governor kept the Yen traders on the boil. In the initial hours of Asian trading session the pair USDJPY pair was heading higher towards the 133.00 mark, but mid day the pair lost momentum and the Yen started appreciating. After a major gap down, the JPYINR pair, bounced off the 61.87 mark and moved above towards the 62.30 level which also happens to be around the 50 day moving average. The pair formed a strong green candle with lower wick which, indicates buying interest near the 61.80 mark. On the upside we might see the resistance come in near the 62.50-62.70. If we take a look at the bigger picture, we can see that the JPYINR pair is broadly moving between 61.90 on the downside and 63.00 on the upside.



With the UK markets shut, most of the moves that we saw in the GBPUSD and the GBPINR pair were majorly speculative, and driven by the market mood. This week we have the GDP data from the UK economy, which is expected to provide a clear picture of the UK economy. On Monday the GBPINR pair opened on a slightly negative note, and tested a low of 101.60 in the first few hours of trading. The bullish momentum in the pair intensified mid day and pushed the pair higher towards the 102.00 mark as we moved closer to the end of the session. Looking at the price action, we can see the pair formed a bullish candle with a long lower wick, indicating strong buying interest near the 101.60 zone Technically, in the sessions to come we might see the pair find support near the 101.60-101.50. On he upside we might see the pair find immediate resistance near the 102.20- 102.30 zone. Our view on the pair continues to be bullish as long as the pair manages to stay above the 101.50 level.



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