Since the beginning of the year, the currency pair lost over 1.0% although last week ended with a drop of almost 0.8% but remains in a bullish phase since late June. Last week the USDJPY initially tried to rally but found enough resistance near the 200-week moving average to reverse and closed near the low of the week, however, managed to close within the previous week range, which suggests being slightly on the bearish side of neutral. The stochastic is showing an overbought market and is beginning to display a shy bearish momentum. After trying to break above the year-to-date high at 113.386, the currency pair has come to a stop and reversed with a high volume, which suggests that a deeper correction might be around the corner. Expecting a downward move to the 38.2 Fibonacci retracement at 109.911 on a break below the 23.6 Fibonacci retracement at 111.159 (scenario 1) however a break below the 38.2 Fibonacci retracement at 109.911 may lead to a deeper move to the 50 Fibonacci retracement at 108.903 (scenario 2).