The Japanese yen bounced over concerns that the BOJ could shift away from its ultra loose policy. The pair bounced off last September’s low of 137.50 and a vertical rise above the psychological level of 140.00 prompted some sellers to cover their bets. The RSI’s overbought situation has caused a temporary pause in the rally as buyers became wary of chasing higher bids. More short-covering could ensue if the euro stays above 139.40, fuelling the recovery. Then the daily resistance at 142.90 would be the next stop.
