USD/JPY was trading above the 107.80 level since the middle of Friday's London trading session.
It was expected that the rate will continue its decline as soon as the hourly simple moving averages approach it from above.
The Federal Reserve released the US FOMC Meeting Minutes data, where the US policymakers provide in-depth insights into the economic and financial conditions that influenced their vote on where to set interests rates.
According to the official release: "Investors' concerns about downside risks to the economic outlook weighed on financial markets over the intermeeting period. Market participants cited negative news about international trade tensions and, to a lesser extent, soft U.S. and foreign economic data as factors that contributed to these developments.
Nominal Treasury yields posted notable declines and the expected path of policy shifted down considerably over the period. Equity prices declined, on net, and corporate bond spreads widened. However, financing conditions for businesses and households generally remained supportive of economic growth."
One US data release during the week
USD/JPY traders have to watch out for the US Retail Sales and Core Retail Sales data release on Tuesday at 12:30 GMT. The event has caused moves on the USD/JPY ranging from 12.1 to 20.5 base points.
For more information on data releases watch this week's Economic Calendar Analysis
USD/JPY short-term daily review
On Monday, the USD/JPY traded above the monthly pivot point that is located at 107.84.The currency pair was expected to fall below the pivot point, as the resistance of the 55, 100 and 200-hour simple moving averages was approaching from above. Moreover, the rate has broken an ascending pattern, signalling a decline.
On the other hand, note that the rate might trade sideways until all of the SMAs approach it.
Hourly Chart
On the daily candle chart, the pressure of the approaching resistance of the 55-day simple moving average at 109.10 was causing the decline.
Meanwhile, the SMA was expected to strengthen the technical resistance levels at 108.90 in the near future. As that occurs, it will be less likely that this level would get passed in a surge.
Daily chart
On Monday, 71% of trader open USD/JPY position volume on the Swiss Foreign Exchange was located in long positions.
Traders have suffered losses during the recent decline.
Meanwhile, trader set up pending orders were bearish, as in the 100-pip range 56% of pending orders were set to sell.