In general, the rate had two possible scenarios that were based on what will happen at the support cluster.
US Advance GDP data release on focus
This week top attention will be paid to the US Federal Reserve's Federal Open market Committee announcements on Wednesday at 18:00 GMT.
In general, the markets expect a US Dollar interest rate cut. Besides that each monetary policy announcement since November 2018 has caused a move on the USD/JPY in the range from 14.0 to 52.1.
Meanwhile, on Tuesday the US CB Consumer Confidence publication could cause a move above ten base points at 14:00 GMT.
In addition, note that the financial media might comment and look at the US ADP Non-Farm Employment Change that is scheduled to be published on Wednesday at 12:15 GMT.
However, historical data reveals that during the time period of five minutes before the release and five minutes afterwards the EUR/USD has moved from 7.5 to 15.2 pips since August 2018.
On Thursday, the ISM Manufacturing PMI will be published at 14:00 GMT. This event has caused moves from 14.9 to 24.3 base points.
On Friday, the US employment data will be published. It will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the official Unemployment Rate. This release has caused moves from 13.4 to 38.9 base points.
USD/JPY short-term daily review
The USD/JPY bounced off the resistance of the 108.90 level, on Tuesday morning. At that level the rate met with a monthly pivot point, which managed to force the rate down.In regards to the near term future, the rate was expected to test technical support levels from 108.40 to 108.50. In that range the 100-hour simple moving average, a 38.20% Fibonacci retracement level and a weekly pivot point.
If this level gets passed, the rate would fall to the 200-hour SMA at 108.19.
On the other hand, the rate might find support in the technical level cluster and reach back up to the 55-hour simple moving average.
Hourly Chart
On the daily candle chart, the rate has come close to the upper trend lines of two dominant patterns. In general, the monthly pivot point, which is located at the 108.90 is the last resistance before the two trend lines.
Meanwhile, note that the rate has additional technical support from the 55-day simple moving average at 108.51.
Daily chart
Read More: Technical Analysis
Traders are long on USD/JPY
On Tuesday, 71% of total open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders were neutral, as in the 100-pip range 53% of pending orders were set to buy and 47% were to sell.