• USD/JPY stalls the previous three sessions’ gains on Tuesday in the European session.
• The formation of the evening star on Monday indicates the upcoming downside momentum.
• The Momentum oscillator holds onto the overbought zone warrants caution for the pair.

USD/JPY intensifies the selling downside momentum as the European trading hours begin. The pair remained under pressure since it touched November, 2018 highs on Friday. At the time of writing, USD/JPY is trading at 114.12, down 0.17% 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 rallied toward a four-year high near 114.50. The divergence in the Relative Strength Index (RSI) forces bulls to take a step back. If the price sustains below the Intraday’s low it would test the 113.50 horizontal support level.

A break below the 23.6% Fibonacci retracement, which extends from the low of the mentioned level at 113.12, will bring the possibility of the 112.50 horizontal level followed by the psychological 112.00 mark.

Alternatively, on the reverse side, a daily close above 114.50 would bring November, 2017 high at 114.73 back in action, allowing bulls to dominate the trade again.

USD/JPY additional levels