On Tuesday, the USD/JPY remained above the support levels near 107.80.
In general, the rate was expected to be squeezed in between the mentioned support level and the resistance of the 55 and 100-hour simple moving averages.
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
The USD/JPY on Tuesday morning remained above the support of the round level of 107.80 and the monthly pivot point at 107.84. The rate had even made an attempt to surge and test the resistance of the 55-hour simple moving average.In general, the mentioned simple moving average will push the rate into the support levels at 107.80. If the rate properly passes the 107.80 level, it could fall to a weekly pivot point at 107.50.
In the other case, the 55-hour SMA could fail and the rate would continue to trade sideways until the 100-hour SMA strengthens the technical resistance that the pair faces.
Hourly Chart
On the daily candle chart, note the resistance being provided by the 55-day simple moving average, which on Tuesday was located at the 108.90 level.
Daily chart
Since Monday, 71% of trader open USD/JPY position volume on the Swiss Foreign Exchange was located in long positions.
Meanwhile, trader set up pending orders were bearish, as in the 100-pip range 55% of pending orders were set to sell.