On Monday, the USD/JPY was making attempts to pass a cluster of technical resistance levels that were located just above the 108.40 level.
The future forecasts for the currency rate were based on what would happen at the cluster of technical levels.
The Federal Reserve released the US Federal Funds Rate data, which came out in line with the expectations of 1.75%.
According to the official release: "Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 1-1/2 to 1-3/4 percent."
Economic Calendar
On Tuesday, the US ISM Non-Manufacturing PMI is set to be released at 15:00 GMT. This event has caused moves from 8.0 to 56.6 pips since October 2018.
Meanwhile, take into account that the next week's reaction tables have been published. Take a look at the 04.11-08.11 Event Historical Reactions publication.
USD/JPY short-term daily review
During Monday morning, the pair raised to the 108.40 level.Given that the exchange rate is pressured by the 100- and 200-hour moving averages, it is likely that bears could prevail in the market.
However, note that the rate could gain support of the 55-hour SMA at 108.20. In this case the pair could surpass the given resistance and reach the psychological level at 108.80.
Hourly Chart
On the daily candle chart, the rate has bounced off a lower trend line of a channel up pattern. Previously, the rate had pierced the trend line and it was speculated that the long term surge could be over.
Meanwhile, take into account that the rate has the support of the 55 and 100-day simple moving averages at 107.55.
Daily chart
Since Friday, on the Swiss Foreign Exchange USD/JPY open position volume was almost neutral. 52% of open volume was long and 48% was short.
Meanwhile, trader set up orders were bearish. Namely, in the 100-pip range 61% of pending orders were to sell and 39% were to buy.
The orders were 76% to buy on Friday.