USD/JPY Technical Analysis: Pullback is gathering steam

• The USD/JPY hourly chart shows the relative strength index (RSI) has adopted a bearish bias (dropped below 50.00) and the spot is establishing a lower high and lower low pattern (bearish setup). 
• The 4-hour chart shows a bearish divergence of the RSI and the yesterday's doji candle shows bullish exhaustion.
• All-in-all, the pair looks set for a deeper pullback. 

Hourly chart

Spot Rate: 112.70

Daily High: 112.88

Daily Low: 112.65

Trend: Bearish

Resistance

R1: 113.00 (psychological hurdle)

R2: 113.27/28 (200-week MA + 61.8 percent Fib of 2017-18 slide)

R3:  114.74 *(November 2017 high)

Support

S1: 112.60 (5-day moving average)

S2: 111.99 (10-day moving average)

S3: 111.40 (May 21 high)