The Japanese yen rallied after July’s CPI exceeded expectations. A lack of support from the 30-day moving average (136.50) has put the dollar bulls on the defensive. Then a drop below the demand zones around 136.00 then 135.00 triggered rounds of liquidation with buyers rushing to the exit. As the RSI dips into the oversold area, the greenback may find some respite over 134.00. 135.70 is the first resistance in case of a bounce. A bearish breakout would deepen the correction towards the daily support at 132.00.
