By FX Empire.com

The USD/JPY pair traded in a narrow range early Tuesday, as the risk appetite improved in FX market which helped the higher-yielding currencies to cover some of their previous losses, adding more pressure on the Japanese currency.

Market sentiment shifted to risky assets after the EU leaders pledged to contain the debt crisis, which helped investors to reduce demand on the yen and the greenback.

On the other hand, the current appreciation in the Japanese currencies increased concerns of another intervention from the Bank of Japan, as the higher yen hurt the Japanese economic recovery.

On Wednesday at 23:50 GMT (Tuesday), Japan will release the Machine Orders Index for August, where the previous reading was down by 8.2% and it’s expected to rebound by 3.9%.

The annual Machine Orders is expected at –3.6% from the previous reading of 4.0%.

At 18:00 GMT, the Federal Reserve Bank will release the minutes of its September 20 FOMC meeting.

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