USD/JPY Price Analysis: Overbought RSI onset corrective pullback toward 111.00

• USD/JPY records fresh daily losses on Friday in the European session.
• The pair records a second straight day fall composed of more than 100-pips.
• Momentum oscillators hold onto the overbought zone and  hint more downside for the pair.

USD/JPY extend the previous session’s declines on the last trading day of the week. The pair opened near the 111.50 mark albeit fizzled out rather quickly in the early European trading hour. At the time of writing, USD/JPY is trading at 111.12, down 0.14% so far.

USD/JPY daily chart

Technically speaking, the USD/JPY pair has been riding higher since September 22 and peaked at the yearly highs at 112.08. The bulls look exhausted now and lookout for some immediate support around 111.00-111.20. Now, if the price took a further dip, it would end up with a deeper correction. Having said that, the first downside target could be found at Tuesday’s low of 110.93.

The Moving Average Convergence Divergence (MACD) indicator trades in the overbought zone . Any downtick in the MACD could put the 110.70 horizontal support  zone back into action. Next, the USD/JPY bears would attempt to retest the low made on September 24 at 110.25 as the Relative Strength Index (RSI) trades near 65.

USD/JPY monthly chart

Alternatively, the formation of a doji candlestick suggests indecisiveness among traders. If the price ticks above the 111.50 mark then the possibility of meeting yesterday’s high at 112.08 couldn’t be negated. Furthermore, USD/JPY bulls would march to December, 2018high at 113.78.

USD/JPY additional levels