• The greenback bulls have sensed barricades at 161.8% Fibonacci extension at 131.00.
• A range shift has been witnessed in the RSI (14), which indicates no more strength left now.
• The asset has slipped below the 20-EMA, which adds to the downside filters.

The USD/JPY pair is witnessing a minor pause post a stalwart rally as the asset is showing some signs of exhaustion after reaching over-extended levels. The asset has printed a two-decade high at 131.25 on Thursday and is experiencing some profit-booking as momentum indicators turned extremely overbought on the intraday timeframe.

The major is facing barricades after reaching 61.8% of the Fibonacci arc (placed from April 19 high at 129.41 to weekly lows at 126.95) placed at the round level resistance of 131.00. A sense of exhaustion can be clearly witnessed in a range of 130.40-131.25. The asset has slipped below the 20-period Exponential Moving Average (EMA) at 130.56, which adds to the downside filters.

The Relative Strength Index (RSI) (14) has shifted from the bullish range of 60.00-80.00 to the consolidation range of 40.00-60.00, which signals a loss of confidence in the greenback bulls for a while.

Going forward, a slippage below the psychological support of 130.00 will drag the asset towards April 19 high at 129.41, followed by April 20 low at 127.46.

On the flip side, greenback bulls may resume their upside journey if the asset oversteps the two-decade high at 131.25, which will send the pair towards the round level resistance at 132.00. A breach of the latter will drive the asset towards the 4 April 2022 high at 133.16.

USD/JPY hourly chart