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USD/JPY keeps the range around 124.40 in early moves

FXStreet (Mumbai) - The US dollar tries to extend higher versus its Japanese counterpart in the early Asian trades, now lifting USD/JPY to reclaim 124.50 levels and beyond, as markets continue to digest the recent PBOC price action while awaiting the latest Yuan fix due out this session.

USD/JPY consolidates well above 124 handle
Currently, the USD/JPY pair trades modestly flat at 124.41, holding on firmly above 124 levels. The greenback remains better bid against the Japanese currency riding higher on the wave of in line with estimates retail sales data from the US released on Thursday.

Moreover, the major also remains supported as Sept Fed rate hike stays alive as markets get accustomed to this week’s PBOC new currency regime while upbeat US data also backed the case for rate lift-off as early as this Sept.

Looking ahead, a series of key macro releases from the US due later in the New York session may have major impact on further USD/JPY moves. While traders watch out for the PBOC Yuan fix for today due to be announced shortly.

USD/JPY Technical Levels

To the upside, the next resistance is located 124.80 (Aug 10 High) levels and above which it could extend gains 125.08 (Aug 7 High) levels. To the downside immediate support might be located at 124.07 (Aug 13 Low) below that at 123.77 (Aug 12 Low) levels.

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