USD/JPY Reached A Strong Resistance And We Can Expect A Correction

After FOMC kept the interest rate as it was and their press conference yesterday, which served as a catalyst for the movement of this and other pairs related to the USD, USD/JPY rallied with almost 150 pips. The pair reached the resistance zone around 1.1270 – 1.1280 and it seems that the rally won’t continue without a correction first.

The bars at the end of the rally are hinting that we could expect a drop, the first support being in the zone around 111.90 – 111.70.

The 111.10 level (the green line) is critical to the pair's rally.

Despite all that, I think that the depreciation is corrective and after the end of the correction there will be a renewal of the rally and a test of 114.00.