USD/JPY to extend gains to fresh 2021 highs

The USD/JPY pair recovered the ground lost post-Fed and trades around 109.00. Above this level, dollar/yen retains a positive outlook, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“The US Federal Reserve reaffirmed its ultra-loose monetary policy for longer. The dot-plot indicated no rate hikes in the next couple of years, while chief Jerome Powell said no action depends on government bond yields.”

“The US calendar includes this Thursday the March Philadelphia Fed Manufacturing Survey, foreseen at 23.1, and Initial Jobless Claims for the week ended March 12, expected at 700K.”

“The USD/JPY pair lacks directional strength in the near-term, but the risk is skewed to the upside, given that the pair holds above 109.00.” 

“Bull will have a clearer way up on a break above 109.40, now the immediate resistance level.”