The Japanese yen weakened as the BoJ kept its ultra-loose policy untouched. On the daily chart, the pair has met stiff selling pressure at December’s highs around 138.00. The confluence of the previous swing low of 135.60 and the 20-day SMA is an important area to see how the bulls would react. The RSI’s oversold situation triggered a ‘buy-the-dips’ behaviour. But the bulls will need to clear 137.40 before they could push for a continuation above 138.00. On the downside, 134.50 would be a second layer of support.
