USDJPY fluctuates as traders react to oil cut news: Key support and resistance levels | Forexlive

The USDJPY experienced fluctuations in today’s trading session as market participants reacted to the weekend’s oil production cut news. Initially, the JPY was sold, causing the USDJPY to rise. The pair approached the 50% retracement level from the March high to the March low at 133.769, coming within 11 pips of the declining 100-day moving average at 133.879. This level has not been breached since March 10. At this point, buyers turned into sellers, and the price fell back towards the session lows near 132.813. The early US session low reached 132.835, with the current trading price at 132.96.

So, what’s next?

Sellers successfully defended the 50% retracement level and the 100-day moving average, halting the rise and pushing the price lower. Now, as the price is well below the high, the breached 38.2% retracement level of the March trading range at 132.793 appears to be a key support level. If this level is broken, the next significant target would be the 100-hour moving average (blue line in the chart above) at 132.467 (and rising). Market participants can expect buyers to emerge at this level if it is tested.