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   “¢   The pair continued with its struggle to build on the momentum further beyond the 114.00 handle and was now being capped by a fresh wave of risk-aversion trade  

   “¢   Overbought conditions on hourly/daily charts turned out to be one of the key factors prompting some long-unwinding trade amid concerns over Italy’s budget proposals.

   “¢   The corrective slide dragged the pair below 23.6% Fibonacci retracement level of the 112.56-114.06 up move, with bulls trying to defend the 113.60 resistance turned support.  

   “¢   Failure to defend the mentioned support might trigger some more weakness and pave the way for an extension of the corrective slide towards the 50% Fibonacci retracement level support.
 

USD/JPY 1-hourly chart

Spot Rate: 113.68
Daily High: 114.02
Trend: Overall bullish  

Resistance
R1: 114.06 (YTD tops set yesterday)
R2: 114.28 (R2 daily pivot-point)
R3: 114.45 (horizontal zone)

Support
S1: 113.30 (50% Fibo. level)
S2: 113.02 (200-period SMA H1)
S3: 112.56 (last Thursday’s swing low)