USD/JPY rises modestly as Fed hikes rates as expected

The US dollar rose across the board and trimmed some of its daily losses after the Federal Reserve announced a rate hike of 25bps as expected. USD/JPY bottomed at 108.80 and then bounced to the upside toward 109.35. 

The pair still remain in negative territory for the day but the greenback has remove some of the bearish momentum on the back of FOMC projections that shows the Fed still expecting another rate hike during the current year. Now traders await Janet Yellen’s press conference. 

Fed raises rates by 25 bps; second hike of 2017

Technical levels 

To the upside, resistance levels are seen at 109.60 (Jun 12 low), 110.00 (psychological) 110.30/35 (daily high) and 110.45/50 (May 31 low). On the flip side, support could be located at 108.80 (daily low), 108.70 (Apr 13 low) and 108.30 (Apr 19 low).