USD/JPY rebounds above 110.70 after Fed’s minutes

• US Dollar rises after FOMC minutes. 
• USD/JPY finds support at 110.60 and rebounds. 

The USD/JPY moved modestly to the upside after the release of the FOMC minutes from the latest meeting. The pair rose from levels near 110.60 to 110.85. It remained below daily high, and the moved higher remove some intraday bearish pressures. 

The greenback gained ground across the board following the minutes. According to the document, Fed’s officials saw continued sustained economic expansion, strong labor market demand and inflation near the target. They noted that some downside risks had increased. Most of them agreed that it would be desirable to announce soon a plan to stop reducing the balance sheet later this year. Regarding rates, “several” participants saw further rate hikes appropriate in 2019, if the economy evolves as expected. 

Short-term Key Levels to watch 

To the downside, the immediate support is the 110.60 area (US session low) and below 110.40/45 (Feb 18 & 19 low) and 110.20. On the upside, resistance might be seen at the daily high at 110.95 followed by 111.10 (Fed high) and 111.50.