FxWirePro: USD/JPY set to extend FOMC-led gains, Fed brings forward rate hike expectations

USD/JPY chart - Trading View 

USD/JPY was trading in narrow range on the day, price action consolidates previous session's spike.

The Fed on Wednesday kept its benchmark rate on hold for a 10th straight meeting after a full percentage-point cut amid the coronavirus pandemic in March of last year.

The Federal Reserve’s dot plot has changed which now shows that officials expect no change in policy this year, while leaning toward two rate increases by the end of 2023, based on median estimates. 

Fed policymakers also  revised inflation expectations to the upside, boosting UST yields and the greenback across the board.

USD/JPY closed 0.63% higher on Wednesday, highest levels since April 2021, scope for further upside as technical indicators turn bullish.

GMMA indicator shows major and minor trend are strongly bullish. Volatility is high and rising and momentum is strongly bullish.

Price action has paused at major trendline resistance, break above will propel the pair higher. Next major bull target lies at 76.4% Fib at 111.39.