USD/JPY Technical Analysis: Overbought RSI and immediate channel resistance can please the sellers

• USD/JPY trades near 109.90 with overbought RSI & adjacent channel resistance being favourable to sellers.
• The pair can avail 109.50 as immediate support during pullback while the 110.00 and the 110.45 act as adjacent strong resistances.

The USD/JPY pair remains mostly unchanged around 109.90 during Tuesday’s Asian trading sessions. However, overbought levels of the 14-period relative strength index (RSI) and resistance-line of immediate ascending trend channel becomes can confine the pair’s nearby upmove.

USD/JPY: Four hour chart

With the RSI taking U-turn from overbought region, the USD/JPY seems finding it hard to clear the 110.00 round figure off-late, which if broken can divert the market attention to the resistance-line of nearly four week old ascending trend-channel, at 110.45.

Should buyers refrain to respect the 110.45 channel barrier, the 111.40-45 and the 112.15-20 are likely following upside resistance regions that could flash on their radars to target.

Alternatively, the 109.50 and the 109.00 can offer nearby supports to the pair during its pullback. The pair’s extended downside beneath 109.00 may have to conquer the 108.55 mark, encompassing channel support.

If at all prices slid under 108.55, the 107.70, the 107.00 and the 106.70 might entertain the sellers.