USDJPY LOOKS TO THE 110.80 LEVEL FOR DIRECTION

The USDJPY pair continues to struggle to close above the key 110.80 resistance area, despite a much better than expected July retail sales report from the United States economy on Tuesday.

Traders now look to the FOMC minutes later day, with the USDJPY three-day bullish reversal from the 108.68 level likely to come under pressure, if the meeting minutes are viewed as more hawkish than financial markets expect.

The USDJPY pair is currently bullish in the short term, but remains strongly bearish in the medium and long term, until the pair trades clearly above the 111.56 level.

Key technical support is found at the daily pivot point, at 110.56, then the 50 and 200 hour-time frame moving averages offer layered support at 110.17, 100.05.

To the upside, the 110.80 level remains the key for further bullish advancement towards a cluster of resistance levels above the 111 level.

The 100-day moving average is found at 111.22, with the 200- week moving average sitting just above, at 111.32. The monthly pivot point adds further technical resistance at 111.55.