The Japanese yen strengthened on better-than-expected Tokyo CPI in July. The bearish MA cross from the daily timeframe may have put the bulls on the defensive.
The dollar’s struggle to keep its head above 109.60 suggests a lack of commitment from the long side. 109.90 has established itself as a fresh resistance.
The RSI has risen back into the neutrality area, giving sellers room to push lower. 109.00 is the closest support and its breach could deepen the correction for the days to come.
