The pair is now up by 0.5% on the day, to 115.24 as price touches the highest since 12 January.
The dollar continues to benefit from the more hawkish Fed communique yesterday, maintaining a solid advance across the board in European morning trade. For USD/JPY, the run up now is testing the 38.2 retracement level of the recent downswing @ 115.25. That could see gains stall a little but a break above the 18 January high of 115.06 does keep buyers in good stead to try and look towards 116.00 again next.
The jump in USD/JPY is also largely helped as markets are now having to try and price in a more aggressive Fed potentially in the months to follow. Four rate hikes were pretty much the baseline previously but we could be looking at five or more potentially if Powell & co. continue to deliver a similar message as they did yesterday.
Or at least the Fed isn't going to shut the door on that possibility, for now.
In the bond market, the yield curve continues to flatten as 2-year yields rise another 1 bps to 1.19% while 10-year yields are down slightly but keeping elevated at 1.83% on the day.
