USD/JPY rebounds back toward 124.00, unchanged for the week

By FXStreet FXStreet (Córdoba) – USD/JPY dropped sharply and bottomed at 123.50 after the release of wage data in the US that pushed greenback to the downside. The pair rebounded and near the end of the week it was rising toward 124.00, trimming daily losses.

Currently it trades at 123.90/95, around the same level it had a week ago. It is about to end the week practically unchanged after being unable to rally above 124.50. It reached a 7-week high at 124.69 but failed to hold and pulled back.

USD/JPY still capped by 124.50 ahead of important numbers

The area around 124.50 continues to be an important short term resistance. The pair was trading near the area, but weak data from the US, triggered a decline of the dollar amid expectations that the Federal Reserve would not raise rates when the FOMC meets in September.

Next week, the US employment report will be release along with other numbers of the labor market. They could make a large impact on USD/JPY as it could move expectations about the future of US monetary policy.

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Source:: FX Street