The Japanese yen stayed muted after the Bank of Japan revised down its inflation forecasts.
The bearish MA cross on the daily time frame may weigh on the US dollar as it recovers towards 108.90, a previous daily support now turned into a resistance.
The rally above 108.20 in the short-term has prompted some sellers to cover reducing the downward pressure. A close above 108.50 would help gain momentum.
As the RSI shows an overbought situation, 108.20 would be the first support In case of a retracement.
