USD/JPY retraces gains after soft US manufacturing data

FXStreet (Córdoba) - The US dollar weakened across the board and retraced most of its daily gains versus the yen after data showed the NY Empire State manufacturing index fell to its lowest level in more than 6 years.

The NY Fed Empire manufacturing index fell to -14.92 in August versus 5.0 expected and down from 3.86 in July. USD/JPY came under immediate pressure and dropped to the 124.25 zone. At time of writing, the pair is trading at 124.30, little changed in the day, having pulled back from a high of 124.56.

USD/JPY levels to watch

In terms of technical levels, USD/JPY could find immediate supports at 124.17 (Aug 17 low), 124.03 (Aug 14 low) and 123.78 (Aug 12 low). On the other hand, resistances line up at 124.56/59 (Aug 17 & 13 highs), 125.27 (Aug 12 high) and 125.66 (Jun 8 high).

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