The USDJPY declined on Thursday in lockstep with broader weakness for the US dollar, but the underlying technical trend continued to support a push for a bigger upside in the short-term.
The USDJPY has advanced in three of the past four days and on Thursday climbed to a high of 121.29, its highest level since March 18. The pair consolidated around 121.06, declining 0.2 percent. Initial resistance is likely found at 121.70; a break above that level could push the USDJPY north of 122.00. On the downside, initial support is located at 120.79.
The post-FOMC selloff for the US dollar is expected to be short-lived, signaling that the USDJPY could make a run at 122.00, according to Scotiabank.