- USD / JPY stops the gains of the previous three sessions during the European session on Tuesday.
- Monday’s “night star” pattern indicates an upcoming downside momentum.
- The Momentum Oscillator is clinging to the overbought zone which warrants caution for the pair.
The USD / JPY pair intensifies the downside momentum as the European session begins on Tuesday. The pair remains under pressure since hitting November 2018 highs on Friday. At the time of writing, USD / JPY is trading at 114.06, shedding 00.23% on the day.
USD / JPY daily chart
On the daily chart, the USD / JPY pair has been moving higher after testing the low of 109.12 on September 22. The pair rose to a four-year high near 114.50. The divergence in the RSI forces the bulls to take a step back. If the price sustains below the intraday low, it would test the horizontal support level at 113.50.
A break below the 23.6% Fibonacci retracement of the bullish move from the mentioned low at 113.12 could target the horizontal level of 112.50 followed by the psychological level of 112.00.
On the other hand, a daily close above 114.50 would target the November 2017 high at 114.73, allowing the bulls to once again dominate the price action.
USD / JPY additional levels
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