FXStreet (Mumbai) - The post-FOMC decision rally in USD/JPY lost steam just shy of 20-DMA at 122.36 and the prices dropped sharply below the mid-point of the 121 handle, before reverting to pre-FOMC levels, where it now wavers. USD/JPY tests 121.50 levels Currently, the USD/JPY pair trades almost unchanged at 121.69, recovering from a brief dip to 121.39 lows. The major ran through fresh offers after the latest Fed decision and Yellen’s comments were considered outrightly dovish by markets, with gradual rate increases likely in the Fed’s tightening path over the next few years. The Fed’s DOT plan clearly reflects Fed’s cautiousness on the interest rates outlook, despite officials suggested they would like to raise rates four times next year by a total 100 basis points. USD/JPY Technical levels to watch In terms of technicals, the immediate resistance is located at 122.36 (20-DMA). A break above the last, the major could test 123/123.06 (round number/ Dec 9 High). While to the downside, the immediate support is located at 121.09 (100-DMA) below which 120.55 (Dec 15 Low) would be tested. For more information, read our latest forex news.