Electron withdrawing group: A group, atom or molecule which can withdraw the electrons from the system or benzene ring is called electron withdrawing group.
As methoxy group has oxygen which is more electronegative than the carbon atom due to the electronegativity of oxygen it shows the -I effect so acts as electron-withdrawing group.
On the other hand, oxygen has loan pair of electrons and it can donate its electron by the +R effect. So the electron density in ortho and para positions increases.