The Dollar continued to climb against the Yen, reaching a one-month high after the Federal Reserve raised the interest rate it charges banks on overnight loans to 0.75% from 0.50%. The Fed signaled the higher interest rate was not the beginning of tightening of the monetary policy, but the market reacted otherwise.
The USD/JPY rose to a high of 92.08 from an opening price of 90.94. The EUR/JPY also climbed in yesterday's trading to 124.44 from an earlier price of 123.41.
The rally in the Dollar shows traders what might happen when the Fed does decide to increase the Fed Funds interest rate. We could see another Dollar rally across the board, much as we experienced yesterday. If this is any indication of the future price movements in the major Dollar pairs, it looks as though being long on the Dollar could be the right move.