FXStreet (Mumbai) - The US dollar picked-up significant strength versus its Japanese counterpart following the 25bps Fed rate hike decision, driving USD/JPY through the roof beyond above 122 handle. USD/JPY finally takes-out 50-DMA at 122.11 Currently, the USD/JPY pair trades 0.30% higher at 122.05, retreating quickly from fresh session highs recorded at 122.29 post-Fed decision. The Fed finally embarked upon the policy normalization path today, by raising the Feds funds rate target range by 25bps to 0.25%-0.50% that triggered a renewed USD rally across the board, and thus, lifting the USD/JPY pair to fresh five-day highs. Adding to the upside in the major, the Wall Street appears to positively react to the Fed decision and further boosted the risk-on trades. While markets continue to digest the latest Fed’s verdict, with the US central bank highlighting the need for “only gradual increases” in the rates over the next year. Meanwhile, markets now await Fed Chair Yellen’s presser for further cues on the future course of the monetary policy. 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.