USD/JPY pushing for 111.50 ahead of US retail sales

US Dollar continues to grind it out against the Yen, but is seeing some softness heading through Wednesday's Asia session.
Upcoming US Retail Sales figures could get the Greenback back on track.

Joshua Gibson FXStreet

The USD/JPY is continuing its bullish push higher but is seeing some hesitation, pulling back to 111.25 after peaking for Wednesday at 111.42.

The Greenback declined against the Japanese Yen from a two-week high near 112.15, bottoming out at 110.10 and is now grinding its way back, clearing back over the 111.00 key handle and the USD/JPY now looks set for a brief reprieve before continuing to claw back recent losses.

Wednesday will be bringing the latest Retail Sales figures for the US, dropping the m/m Core Retail Sales for July (forecast 0.3%, previous 0.4%) at 12:30 GMT, while the Yen side will be seeing Japan's latest Trade Balance figures late in the day at 23:50 GMT, where an expected surge in imports is expected to push the Merchandise Trade Balance down from the last showing of ¥720.0 billion to ¥-50.0 billion.

USD/JPY levels to watch

Despite the US Dollar's recovery, major swing high levels remain unbroken thanks to continued global tensions, and as FXStreet's own Valeria Bednarik noted, "in the 4 hours chart, the pair is currently struggling around a directionless 100 SMA with the 200 SMA also heading nowhere a few pips above the current level, although technical indicators maintain their upward slopes at fresh weekly highs and well into positive territory, somehow anticipating another leg higher for this Wednesday."

Support levels: 110.50 110.20 109.80

Resistance levels: 111.30 111.60 111.90

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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