FXStreet (Córdoba) - USD/JPY initially dropped toward daily lows but after reaching 118.37 bounced back toward the same level it had before the release of the FOMC minutes at 188.55/60. Greenback is modestly lower across the board and it lost ground particularly against the Euro after the minutes. According to the document, officials expressed significant concerns about lingering low inflation levels, for some the decision to raise rates was a close call and gave no clues about the path of future rate hikes. USD/JPY levels to watch The pair has been trading in a range during the last hours, with support at 118.30 and resistance around 118.75. Currently the pair trades at 118.55, 40 pips below yesterday’s closing price and is testing the 20-hour moving average. If it rises above it would need to break 118.75 in order to gain momentum. The short-term trend favors still favors the downside. The 118.30 remains very important; if USD/JPY posts a daily close below the mentioned level it would be the lowest since February of last year and it could open the doors to more losses. For more information, read our latest forex news.