USD/JPY: 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.

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.