USD/JPY: 101.50 tested amid OPEC deal optimism

The yen weakness continues as we head into early Europe, with the USD/JPY pair having tested fresh weekly tops at 101.50 – key psychological resistance.

USD/JPY: Bulls face exhaustion?

The bulls take a breather after running into the key daily resistance at 101.50 levels, while the Japanese yen holds heavy losses in light of prevalent risk-on environment, triggered by OPEC’s decision to reach a consensus on output cut late-Wednesday.  At the time of writing, USD/JPY climbs +0.71% to 101.40, while both crude benchmarks consolidate the extensive rally witnessed yesterday.

Looking ahead, the major will continue to track the broader market sentiment in response to the oil price-action. While some action on the USD front may be witnessed on  the release of the US GDP report and Fed speeches.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 101.65 (20 & 50-DMA). A break above the last, the major could test 102 (round figure) and 102.41 (Aug 29 high) beyond the last. While to the downside, the immediate support is seen at 100.95 (10-DMA), next at 100.76 (5-DMA) and below that at 100.50 (psychological levels).