USD/JPY retreats from 3-month highs as Fed leaves rates unchanged

• US Dollar turns lower after FOMC statement. 
• Federal Reserve leaves rates unchanged at 1.50-1.75%, as expected. 

The USD/JPY pair dropped from 109.90 to 109.65 after the Federal Reserve announced its decision on monetary policy. The greenback pulled back across the board and erased gains. 

The pair continues to move with a bullish bias but the short-term momentum eased after the statement. Earlier today USD/JPY hit the highest level in three months slightly above 110.00. 

As expected, the US central bank kept rates unchanged on a unanimous decision. According to the FOMC employment growth has been strong on average while the economy continues to grow at a moderate rate. While regarding inflation, the Fed mentioned that core inflation moved close to the 2% target. 

Technical levels 

To the upside, the immediate resistance is seen at 110.00/05 (May 2 high), followed by 110.30 and 110.45/50 (Feb high). On the flip side, support could be located at 109.60/65 (May 2 low), 109.45 (Apr 26 & 30 high) and 109.15/20.