What’s next? – USDJPY 15.06.17

USDJPY

The USDJPY was 0.52 percent higher as of 12:05 GMT at 110.13, as the dollar extended gains on the back of a widely anticipated interest rate hike by the Federal Reserve.

In a widely anticipated move, US policymakers increased short-term interest rates to a range between 1.00 and 1.25 percent. A higher rates environment supports the US dollar.

On Wednesday, the dollar/yen remained below the 110.20 resistance level, which is currently trying to cross. The pair is below a bearish trendline that extends from the May 11 high of 114.36 to 110.81. This movement could push the pair to a downward target of 108.13.

However, sentiment on the dollar remained quite unstable as it was confirmed that special counsel Robert Mueller is now investigating President Donald Trump for possible obstruction of justice in the Flynn-Russia case.

The US dollar index, which gauges the greenback against a basket of six major rivals, was up 0.42 percent at a bold 97.00, bouncing from a prior session seven-month lows of 96.31.

On Friday, the pair will be eyed by most investors as the Bank of Japan is gathering for a new monetary policy meeting. The Nippon regulator is expected to hold interest rates at minus 0.10 percent. A press conference following the event will be offered as of 06:30 GMT.