FxWirePro: USD/JPY extends previous session's gains, greenback remains bid on Fed's hawkish tilt

USD/JPY chart - Trading View 

USD/JPY was trading 0.09% higher on the day at 109.86 at around 06:50 GMT, after closing 0.51% higher in the previous session.

The greenback ended Wednesday higher against most major rivals as the FOMC meeting showed a hawkish.

The Federal Reserve set the stage for rate hikes next year but left enough breathing room to slow things down if necessary.

Chairperson Jerome Powell did not give any specifics about the start of the taper, but, flagged that it was not far off.

“If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted,” the FOMC’s statement said.

DXY hit monthly highs at 93.52 on Wednesday, but is showing slight weakness on Thursday's trade, down 0.18% at 93.26 at the time of writing. 

On the other side, the Bank of Japan (BOJ) kept its interest rate steady at -0.10% as it handed down its latest policy decision on Wednesday. 

USD/JPY is holding gains above 21-EMA. Price action is testing cloud resistance and decisive break above will fuel further gains.