The Japanese yen rallies as the BOJ considers raising its inflation forecast. The dollar’s rebound came to a halt at a previous low (134.50) from early December, which has turned into resistance. Sentiment remains downbeat after the greenback gave up all the gains. 130.50 is a major level to see whether the buy side will be strong enough to contain the fall. A bearish breakout would pave the way for a slide to 127.00. The RSI’s oversold condition may attract some bargain hunters and 133.00 would be the first hurdle to test.
