USD/JPY Technical Analysis: Rally pauses near 113.00, minor pullback likely

The bullish move in the USD/JPY seems to have stalled near 113.00 and the bearish divergence of the hourly chart relative strength index (RSI) indicates a minor pullback could be in the offing, possibly to the rising trendline support, currently located at 112.70.
The dip could be short-lived and the pair could set new yearly highs above 113.39 if the Fed signals low tolerance for an above-target inflation.

Omkar Godbole FXStreet Contributor

Hourly Chart

Spot Rate: 112.92

Daily High: 113.03

Daily Low: 112.89

Trend: Intraday bearish

Resistance

R1: 113.18 (July high)

R2: 113.39 (January high)

R3: 113.75 (December high)

Support

S1: 112.70 (trendline support)

S2: 112.37 (200-hour moving average)

S3: 112.00 (psychological level)

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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