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USD/JPY bounces off 124.00 and trims losses

FXStreet (Córdoba) - USD/JPY bounced off lows and trimmed intraday losses as the dollar received a mild boost from better-than-expected US producer prices data.

US PPI rose a seasonally adjusted 0.2% in July versus 0.1% expected by analysts, while core prices, which exclude volatile components such as energy and food, rose 0.3% in July versus 0.1% expected. Over 12 months to July, producer prices fell 0.8% while core prices were up only 0.6%.

After bottoming out at the 124.00 area, USD/JPY managed to cut some of its intraday losses and climbed back to the 124.30 zone. At time of writing, the pair is trading at 124.25, still 0.14% below its opening price.

USD/JPY levels to watch


On the upside, next resistances could be found at 124.59 (Aug 13 high), 125.27 (Aug 12 high) and 125.66 (Jun 8 high). On the downside, immediate supports are seen at 124.03 (Aug 14 low), 123.78 (Aug 12 low) and 123.57 (50-day SMA).

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