In general, the rate was expected to get squeezed in between the 55 and 100-hour simple moving averages.
Economic Calendar
On Wednesday, September 18, the FOMC Statement and Economic Projections releases are expected at 18:00 GMT. Note that the Federal Funds Rate data will be published at the same time. Since December, these releases have moved the pair from 25.8 to 52.1 pips.
On Thursday, September 19, the Bank of Japan is expected to release the Monetary Policy Statement.
USD/JPY short-term daily review
On Monday, the USD/JPY started the week with a gap down opening. The start of trading was highly volatile until the rate began trading in the range between the 55 and 100-hour simple moving averages near 107.90.In general, the rate was expected to get squeezed in between the 55-hour SMA at 108.00 and the 100-hour SMA at 107.80.
A break out from the range down would reach for the weekly pivot point at 107.73. On the other hand, if the rate breaks out to the upside, it could reach the 38.20% Fibonacci retracement level at 108.44.
Hourly Chart
On the daily candle chart, the pair has pierced the upper trend line of a large scale channel down pattern and met with the resistance of the 100-day simple moving average.
In addition, note that the pair might get support from the 55-day simple moving average which is located at the 107.20 mark.
Daily chart
Read More: Technical Analysis
Long position volume increases
On Friday, 54% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
By the middle of Monday's trading session, the sentiment was 59% long.
Meanwhile, trader set up orders were slightly bearish. Namely, in the 100-pip range 56% of pending orders were set to sell and 44% were to buy.
The orders had not changed since Friday.