USD/JPY dampens on divergent Boj-Fed future projections.

Wednesday's session proved to be very crucial for USD/JPY cross as Bank of Japan and Federal Reserve announced their monetary policy decision and future economic projections impacting their respective currencies.
USD/JPY sharply pulled back to 148.00 mark after Bank of Japan’s governor Kazuo Ueda hinted at a future rate hike in his press conference yesterday. He reiterated that Japan's economy is experiencing a moderate recovery, though economic uncertainties persist due to potential shifts in global trade policy. Ueda highlighted that domestic wage-inflation cycle is on track and emphasized if economy and prices align with BOJ’s forecast, it will continue to raise the policy rate as the current real interest rates are very low.
On the other hand, Fed maintained its benchmark interest rate at 4.50% citing consequences of Trump's protectionary tariff measures. The fed officials also expect the economic growth to slow down relatively by the end of this year which could lead to two rate cuts as widely expected. This dovish commentary resulted in the pair's fall.

Technicals suggest there's more room for decline if USD/JPY breaks the 147.00 level below which the pair could accelerate the fall towards 146.00 and 145.35. 
On the flip side, a possible recovery from the six month low of 148.24 could take the price higher towards 150.00 and 152.45. 

USD/JPY TECHNICAL OVERVIEW

Technical Structure: Shooting star candlestick on daily, Close below 20 SMA on daily, Bearish candle on 4H, Bearish flag on 1H.

Primary Trend: Downtrend

Intraday Trend/Intraday Strategy: Bearish to Neutral/ Sell on Resistance, buy on support

Major Support: 147.60, 146.00, 145.35

Major Resistance: 150.25, 151.30, 152.00