The Japanese yen bounces back as profit-taking turns into a short squeeze. A break below 137.00 has triggered a new round of sell-off, invalidating the July rebound in the process. 135.00 at the origin of the breakout rally in late May is a key level to see whether there are still enough buyers in the market. Otherwise, 133.00 could be next. The RSI’s oversold condition may cause a limited rebound as intraday sellers take profit. Strong pressure could be expected around the support-turned-resistance at 137.30.