USDJPY What will happen now?

The USD/JPY pair is gaining momentum on the charts after the Federal Reserve's rate decision and update on inflation projections. It has surged to new highs near the 148.00 mark as the US dollar (USD) benefits from increasing inflation expectations set by the Fed. Starting at 147.50, the USD/JPY has gained a strong 50 pips following the Fed's rate decision. The Fed opted to maintain its benchmark rate at 5%, aligning with market expectations. However, the latest economic projections by the Federal Open Market Committee (FOMC) indicate a higher-than-anticipated rise in near-term inflation. The FOMC's one-year forecast predicts inflation reaching 5.1%, surpassing the previous projection of 4.6%. This has caused market movements as they position themselves ahead of the Federal Reserve's upcoming press conference scheduled for the next hour. The USD/JPY has reversed its Wednesday's downward trend and surged towards the 148.00 mark during the early session.