USD/JPY: where next, all the way to 114 handle on hawkish Fed, dovish BoJ today?

Currently, USD/JPY is trading at 112.55, up 0.30% on the day, having posted a daily high at 112.66 and low at 112.18.

Tokyo is maintaining the better bid theme for the major as seen overnight's FOMC event.

• Wall Street preserves gains after FOMC ramps up rate hike expectations
• Forex today: Fed proves to market it means business, regardless, dollar soars

USD/JPY spiked to 111.99, the initial high post FOMC announcements. However, the dollar picked up further demand as the market digested the FOMC as slightly more hawkish than expected, announcing that there should be four more hikes before 2019, including one further hike this year. 

FOMC main takeaways:

• The Federal Reserve left rates in the 1.00%-1.25% range.
• The Fed announced that it will begin to unwind of $4.5 trillion balance sheet in October.
• Hurricanes unlikely to affect the medium-term path of the economy.

Next in focus is the BOJ meeting: 

• BOJ Preview: As Low a Risk Event as it Gets

(Note: BoJ Gov Kuroda will hold a press conference at 02.30ET)

USD/JPY levels 

With closes above 111.75, a 61.8% fibo level, eyes are now on the wide towards 114.38/49. To the downside, and below 111.20, 110.95/20 has been a previously supportive range. 110.62 is the daily cloud base ahead of the previous downtrend at 109.13 before the 108.13 April low and the recent low at 107.32.