USD/JPY stepping back from the ten-month highs, offered in Tokyo

Currently, USD/JPY is trading at 118.26, up 0.10% on the day, having posted a daily high at 118.41 and low at 118.10.

USD/JPY extended its rise to 118.66 and a 10-month high while the DXY rose 1.3% overnight in response to yesterday's FOMC meeting. Moreover, stocks continued to rally and this pressure the yen along with commodity prices holding up in light of a stronger dollar. There is a great deal of attention paid to the divergence between the fed and BoJ and the yield spread, with the markets dumping bonds and gold and looking for risk-on yield in light of Trump and the Fed's tighter dot plot, overnight, the US 10yr treasury yields were extended yesterday's post-FOMC rise by another 7bp to 2.64% to a two-year high. The Fed funds futures are now pricing a 100% chance of another hike by June.

USD/JPY levels

With spot trading at 118.26, we can see next resistance ahead at 118.41 (Daily High), 118.63 (Weekly Classic R3), 118.68 (Yesterday's High), 119.08 (Daily Classic R2) and 120.75 (Daily Classic R3). Support below can be found at 118.15 (Daily Open), 118.15 (Monthly High), 118.15 (Weekly High), 118.11 (Daily Classic R1) and 118.10 (Daily Low).