USD/JPY holds near daily highs after FOMC minutes

The US dollar rose immediately after the release of the FOMC minutes and printed fresh highs but then pulled back. USD/JPY fell toward 111.00 after the release but then bounced and printed a fresh daily high at 111.45. The pair, like the US dollar in the market, is still looking for a clear direction. 

Currently, the pair is trading at 111.35, slightly above the level it had before the minutes and continues near daily highs. 

The minutes showed that FOMC members discussed what to do in the near future with their reinvestment policy. They agreed that changes in policy should be communicated well in advance, regarding the balance sheet. Members disagreed on how close inflation is to the Fed’s target. 

Technical levels 

To the upside, resistance levels might be located at 111.60 (April 3 high), 111.95 (Mar 30 high), 112.15/20 (Mar 31 high) and 112.45 (Mar 20 low). On the flip side, support could be seen at 111.05 (American session low), 110.50/55 (daily low), 110.25 (Apr 4 low) 110.10 (Mar lows) and 109.80 (Nov 18 low).