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

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.

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.

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