Forex: USD/JPY reacts to the upside following FOMC decision

FXstreet.com (San Francisco) - The Dollar is currently rising against the Japanese yen following the FOMC decision to leave unchanged its interest rate at the 0.25% and the announcement that the Federal Reserve is ready to increase or decrease the pace of bond purchases.

The Fed also said that they will adjust purchases for labor or inflation changes.

The USD/JPY has jumped around 50 pips in the latest few minutes from 97.05 to the 97.55. The pair is currently pricing at 97.40, 0.05% negative on the day. The pair is trading slightly bullish according to the FXstreet.com trend index with indicators such as CCI and Momentum pointing north while the Stochastic and the MACD neutral in the 15-minute chart.

On the downside, a breach of 96.99 (low Apr.30) would expose 96.26 (Kijun-Sen line) ahead of 95.67 (low Apr.16). On the upside, resistance levels are located at 97.69 (high May 1) followed by 98.05 (MA100h) and finally 98.13 (high Apr.30).