USD/JPY Technical Analysis: Stochastic calls for correction

• The bearish divergence of the hourly stochastic indicates the USD/JPY could be in for a minor pullback and a much awaited break above 113.30 (200-week MA) could remain elusive.
• Further, the daily relative strength index (RSI) is also reporting overbought conditions.

Hourly chart

Spot Rate: 112.93

Daily High: 113.08

Daily Low: 112.85

Trend: Overbought, pullback likely

Resistance

R1: 113.08 (Asian session high)

R2: 113.30 (200-week MA)

R3: 113.75 (December 2017 high)

Support

S1: 112.85 (Asian session low)

S2: 112.59 (5-day MA)

S3: 112.20 (July 16 low)