The USD/JPY pair surrendered gains and the treasury yields dropped sharply after US Fed left interest rate unchanged and revised interest rate forecasts lower. USD tanks on dovish Fed The greenback is being offered across the board after Fed “Dot Chart” revealed the policymakers now expect only 2 rates hikes by the year end as opposed to expectation of four rate hikes in December. Furthermore, the Fed also revised 2016 GDP forecasts lower. Consequently, the 2-year treasury yield, which mimics rate hike bets fell to 0.912% from near 0.99% levels. The USD/JPY pair fell from 113.740 levels to 113.10 levels. The focus now shifts to Fed chairwoman Yellen’s press conference. USD/JPY Technical Levels The immediate support is seen at 112.42 (March 8 low), under which prices could drop to 111.65 (Feb 12 low). On the other hand, a break above immediate hurdle at 113.47 (5-DMA) would expose daily high of 113.82. For more information, read our latest forex news.