EUR/JPY rises toward 123.00 after Fed raises rates

EUR/JPY rose moderately toward 123.00 after the decision of the Federal Reserve to raise interest rate by 25bp as expected, on a unanimous decision. The new macroeconomic projections from FOMC members, see a potential of 3 rate hikes during 2017. Janet Yellen is giving a press conference. 

The US dollar climbed across the board after the decision while US bond yield rose, weakening the Japanese currency. Equity prices in the US, initially rose but are now back into negative territory for the day. 

The rally of USD/JPY above 116.00 to multi-month highs was offset by a sharp decline in the EUR/USD the fell to 1.0555. The euro still holds above the key 1.0500 support against the US dollar; a break lower could weaken the euro in the market. 

EUR/JPY levels 

Currently, the pair trades at 122.90, as it tests the 123.00 zone, above here the next resistance could be seen at 123.35 (last week high), followed by 124.20 (May 31 high). On the downside, support levels could be located at 122.10/15 (daily low), 121.45 (Dec 12 low) and 120.90 (Dec 8 low).