The Japanese yen soared after the BoJ unexpectedly relaxed its yield cap. The previous rebound quickly had turned into a bull trap at 137.80 under the 20-day moving average. The sharp fall below 134.50 is a sign of liquidation, invalidating the recovery attempt. The August low of 130.50 is a critical floor to test the bulls’ resolve and its breach may pave the way for a bearish reversal in the new year. As the RSI sank into oversold territory, the former demand zone next to 135.00 has turned into a supply one.