• USD/JPY remains sidelined after rising to the fresh high since January 2017.
• Overbought RSI multiple hurdles to the north hints at a pullback.
• Previous resistance from early 2021, 78.6% FE restricts immediate downside.

USD/JPY seesaws around 118.30-35 heading into Tuesday’s European session, following the run-up to refresh the five-year high in early Asia.

The yen pair buyers seem to take a breather amid overbought RSI. However, the sellers aren’t likely to take the risk until the quote drops below a convergence of the resistance-turned-support from March 2021 and 78.6% Fibonacci Expansion (FE) of September-November 2021 moves, around 117.65-60.

Even so, the 61.8% FE and January 2022 tops, respectively near 116.50 and 116.35, will challenge the USD/JPY bears before highlighting the 100-DMA level of 114.65, also known as the last defense for the pair buyers.

Meanwhile, tops marked during 2017 guard the quote’s immediate upside around 118.65-70 ahead of the 100% FE level near 119.00.

In a case where the USD/JPY prices rally beyond 119.00, the odds of witnessing the 120.00 threshold on the chart can’t be ruled out.

USD/JPY: Daily chart

Trend: Bullish