USD/JPY rallying into 148.00 on Fed rate call, inflation outlook

• USD/JPY rebounds on updated Fed inflation outlook.
• Greenback reclaims most of Thursday's downside in the run-up to Fed rate call.
• Fed keeps rates at 5.5%, but sees inflation higher than initially expected.

The USD/JPY pair is catching a lift up the charts following the Federal Reserve's (Fed) rate call and inflation outlook update, pushing into fresh highs near the 148.00 handle as the Greenback (USD) catches a ride on rising inflation expectations from the Fed.

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Fed Statement comparison: September vs July

Breaking: Fed leaves interest rate unchanged at 5.25%-5.5% as expected

The USD/JPY kicked off from 147.50 to climb a solid 50 pips following the Fed's rate call; the Fed kept their benchmark rate at 5.% as markets broadly expected, but the Federal Open Market Committee's (FOMC) latest economic expectations sees near-term inflation rising more than expected.

The FOMC's 1-year forecast sees inflation hitting into 5.1% compared to the previous printing of 4.6%, and markets are jostling for position ahead of the Federal Reserve's upcoming press conference due at the bottom of the hour.

USD/JPY technical outlook

The USD/JPY reversed Wednesday's flows, ramping up into the 148.00 handle after spending most of the early session on the down side.

Dollar (USD) bulls will be looking to reclaim the day's early high near 148.20, while shorts will have their work cut out for them forcing the pair back to the day's lows into 147.50.

Today's topside action for the USD/JPY has the pair set to challenge ten-month highs.

USD/JPY technical levels