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USD/JPY keeps lows around 124.30

FXStreet (Edinburgh) - The greenback keeps depreciating vs. its Japanese counterpart on Friday, sending USD/JPY to test the lower bound of the range near 124.30.

USD/JPY attention to US data

Spot is looking to consolidate the recent break above the 124.00 handle after Wednesday’s PBoC-led sharp sell off sent the pair to the vicinity of 123.80, or 2-week lows.

Yesterday’s strong advance of the dollar prompted market participants to cash up part of those gains, opening the door for the current pullback ahead of US Industrial Production figures and the Reuters/Michigan index due later. Of note as well will be the Eurogroup meeting, with the third Greek bailout on top of the agenda.

USD/JPY levels to watch

As of writing the pair is down 0.14% at 124.25 with the next support at 124.10 (low Aug.7) ahead of 123.79 (low Aug.13) and then 123.51 (low Jul.31). On the other hand, a breakout of 124.63 (high Aug.13) would open the door to 124.89 (high Aug.10) and finally 125.25 (high Aug.11).

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