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USD/JPY capped at 102.50

FXStreet (Edinburgh) - The Japanese yen continues to depreciate vs. the greenback on Wednesday, lifting the USD/JPY to highs around 102.50.

USD/JPY firmer post-GDP data

The Japanese currency is extending its bounce off the recent low near 101.50, this time backed buy poor data from the Japanese GDP during the second quarter. In fact, the economy contracted 6.8% on a yearly basis and 1.7% QoQ. Despite the grim numbers, they were not as bad as expected, and analysts expect the economy to return to the growth path in the third quarter. “The short-term target highlighted at 102.40 yesterday was not met with a high of 102.36. While the undertone remains positive, any further up-move will struggle near the strong resistant at 102.50. Strong support is still at 102.00”, commented Quek Ser Leang, Market Strategist at UOB Group.

USD/JPY key levels

The pair is now up 0.19% at 102.49 with the next resistance at 102.64 (high Aug.6) followed by 102.93 (high Jul.5) and finally 103.05 (high Aug.1). On the flip side, a breach of 102.09 (low Aug.12) would aim for 102.02 (low Aug.11) and then 101.51 (low Aug.8).

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