The Japanese yen tumbled after the BoJ shattered hopes that it would wind down its stimulus policy. Still the dollar’s short-lived surge turned south at a previous demand zone around 131.50 which coincides with the 20-day moving average. This is a sign that the mood has remained cautious for the time being and the bears saw in the rebound an opportunity to sell into strength. The recent low of 127.30 is a key support. A bearish breakout would expose the greenback to further downside below last May’s low at 126.50.
