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Forex: USD/JPY retraces daily gains

FXstreet.com (Córdoba) - The dollar weakened and surrendered completely its intraday gains versus the yen as soft US data weighed on the greenback and encouraged investors to take profits.

USD/JPY retreated from a 4 ½ year high of 102.76 and slid to retest daily lows at the 102.05 zone after disappointing US data for NY manufacturing index, PPI and industrial production. At time of writing, USD/JPY is trading around 102.20, where it is 0.2% below its opening price.

In terms of technical levels, if USD/JPY falls below the 102.05/00 area (daily lows/psychological level), next supports could be found at 101.50 (low May 13/100-hour SMA) and 101.25 (low May 14). On the other hand, if the cross resumes the upside, resistances are seen at 102.76 (daily high) and 103.00/05 (psychological level/high Oct 14 2008).

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