The expectation that the Fed will raise its rate in June still supports the dollar, it brought the USD/JPY to its 3-weeks high.
FOMC minute release showed that the Fed still opens the chance for another rate hike in June, if US economic data show improvements. The minutes boosted the dollar, along with inflation data that showed the biggest gain in the last three years.
A pull-back move has occurred into the Fibonacci support area at 110.237-110.027. 20 MA and 50 MA are still rising on hourly chart. Note that hourly stochastic and CCI are almost oversold. The outlook for USD/JPY remains bullish for short-term trading.
The trading strategy is to wait for bullish signal confirmation within the Fibo’s support area as signal to go long with rebound target at 110.366 and 110.576 in extension. Please be careful if the support at 110.027 breaks instead because it will turn the bias to bearish and possibly will push USD/JPY down to 109.878-109.688.