As it was expected, the Federal Reserve increased the interest rate range by 25 points to 1.25% -1.50%. They published optimistic economic forecasts. At the same time, USD weakened against the other majors. #DX declined by more than 0.70%. The Central Bank’s concern over a low level of the inflation pressured the US dollar. The Fed representatives voted against the rate hike as there was no sense in rushing to tighten the monetary policy. According to the CME FedWatch Tool, there won’t be any need for changes at the January 2018 meeting. It’s likely that Jerome Powell will speak about the Fed’s plans at the meeting in mid-March 2018.
The current technical pattern on USD/JPY
Support levels: 112.500, 111.000, 108.850
Resistance levels: 113.500, 114.350
Bears may prevail on the USD/JPY currency pair in the near future. The Bearish Engulfing Price Action pattern (a reversal formation) has appeared near the 113.500 resistance level on the D1 chart. The quotes are testing the 112.500 local support now. Another pattern of the technical analysis called Head&Shoulders appeared on the asset. It can be a confirmation for emerging of a downward trend.
I recommend you selling the USD/JPY pair with using a trailing stop after it fixes below the 112.500 level. The profit can be taken at 111.750. The asset can move to the 111.000-110.250 zone in the medium term. Entry points and confirmations may be looked for on lower timeframes.