USD/JPY jumps toward 116.00 as Fed raises rates

The US dollar rose across the board after the Federal Reserve, as expected, rose the target range for the Fed Funds from 0.25% - 0.50% to 0.50% - 0.75%. It is the first rate hike since December of last year and the second in almost a decade. 

USD/JPY rose from 115.30 toward 116.00, approaching weekly highs that lie at 116.10/15 after the decision, that triggered sharp moves across the forex market. 

Equity index in Wall Street did not make sharp moves and also the bond market remained relatively quiet so far. Gold prices tumbled to $1151 but then rebounded. 

As investors continue to analyze the FOMC statement and its projections, are also getting ready for Janet Yellen press conference that will start in a few minutes at 19:30 GMT. 

Technical levels 

To the upside, resistance levels might be seen at 116.10/15 (Dec 12 high), 116.60 (Jan 11 low) and 117.00 (psychological). On the opposite direction, support could be seen at 115.50 (Dec 13 high), 114.75 (daily low), 114.40 (Dec 7 high) and 113.10 (Dec 8 low).