The Japanese yen rallies amid growing risk aversion across the board. The euro continues to shed gains from the surge earlier this month.
A fall below 131.90 triggered profit-taking, and the latest rally came out to be a dead cat bounce after it was capped by this support-turned-resistance. A break below 130.40 (which sits over the 30-day moving average) shows fragility in market sentiment and would cause another round of sell-off.
129.20 at the base of the bullish impetus would be the next support.
