• USD/JPY records fresh daily gains on Friday in the European session.
• The pair remains poised for weekly gains of nearly 1%.
• Momentum oscillators hold onto the overbought zone warrants caution for the pair.

USD/JPY extend the previous session’s gains on the last trading day of the week. The pair opened lower but swiftly rallies toward the YTD highs as the pair gathers momentum in the European trading hour. At the time of writing, USD/JPY is trading at 114.15, up 0.43% so far.

USD/JPY daily chart

On the daily chart, the USD/JPY pair has been riding higher after testing the low of 109.12 on September 22. The pair posted gains of nearly 50-pips in the intraday session, indicating the underlying bullish sentiment. Having said that, if the price sustains above the intraday high, the bulls will be next looking for October 2018 high at 114.55.

Alternatively, the Moving Average Convergence Divergence (MACD) indicator trades in the overbought zone. Any downtick in the MACD could call the USD/JPY bears to takeout the 113.50 horizontal support level. Next, on the bear’s radar will be the 23.6% Fibonacci retracement, which extends from the low of 109.21, at 113.00 followed by this Monday’s low of 112.15.

USD/JPY additional levels