FXStreet (Córdoba) - USD/JPY retreated from 3-week highs after the Federal Reserve decision to leave rates unchanged and following the statement. The pair dropped from levels around 119.00 to 118.57 but then bounced back to the upside. The pair was trading at 118.75/80, still below the level it had before the statement but away from the lows. Greenback also declined versus the euro and the Swissy after the decision while it rose modestly against commodity currencies. Stocks in the US dropped after the statement. The Dow Jones was down 0.40% and the Nasdaq was falling 1.00%. Fed leaves road unclear The decision to leave rates unchanged was expected but the tone of the statement did not erase completely the possibility of a rate hike in March. The FOMC mentioned that they were monitoring financial development, noted the economic grow slowed and also mentioned the impact of a stronger US dollar. The message to market appears to be that they know what is going on and they will take that into account when deciding what to do at the next meeting. USD/JPY remains around key level The recent decline after the FOMC statement, moved the price modestly away from a key resistance area located around the 118.80 area that capped the upside last week and where the 38.2 Fibonacci retracement of the decline from 123 is located. A consolidation on top could open the doors for more gains. Trade Federal Reserve interest rate decision with FXStreet - Live Coverage For more information, read our latest forex news.