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Duplicate layer is blurred with its opacity reduced allowing part of the lower layer to peek through.

Right-click your layer's name and duplicate the layer
blur this new duplicate layer and decrease its opacity

-or-

Experiment with your Layer Blend Modes
Click NORMAL on your Layer Palette
to access all your layer blend modes.

Hard Light layer blend mode

Darken layer blend mode

All your settings were tweaked to perfection when you suddenly realize you are accidentally on the wrong darned layer?

Do not cancel that dialog box!

Go ahead and apply the effect to that wrong layer. Then hit your UNDO button. This insures all those settings will still be available when you return to the dialog box instead of canceling too.

Sharper images often generate larger files
than those that have been blurred or softened.