The Federal Open Market Committee (FOMC) voted to raise the benchmark interest rate from 0.75% to 1.00%. This was largely in-line with expectation. The committee's guidance suggests there will likely be 2 more rate hikes in 2017, which stuck to the script of the previous Fed announcement.Federal Reserve Press Release - March 15, 2017 (pdf)Fed Economic Projections - March 15, 2017 (pdf)The conventional thinking is that a hawkish FOMC should support the USD. But after the rate hike, we saw the USD fall across the board. The USD/JPY for example fell sharply after tagging 115.50, falling to crack 113.00 during the 3/16 Asian-European session.USD/JPY 4H Chart(click to enlarge)Resistance Holds:- USD/JPY essentially failed to break above a key consolidation resistance. The break would have been a shift from the currently sideways market to a bullish one. Instead, USD/JPY remains in the sideways consolidation range.Buy the Rumor, Sell the News:- This was a buy the rumor sell the news situation. The USD/JPY was propped up in March ahead of the rate hike. - The rate hike was highly anticipated. The Fed statement was not more hawkish then the previous.- Therefore, the market did not have more reason to continue the rally. Bullish and Sideways and Bearish?- A buy the rumor, sell the news reaction does not always set the tone. - I still have some bullish bias on USD/JPY in the long-term. - But we have to respect the medium-term sideways mode and the short-term bearish reaction.- Given these different modes in different time frames, I think the prudent thing to do is to wait for price to fall to a key support area. - There is a wide support area between 111.60 and 112.60. - Right now, there seems to be support at 113.00, but there is too much risk here to buy. - If price falls to 112.00, I think its worth considering. We might even consider start with a small position around 112.50. Reward to Risk:- The target should first be limited to 115.00. - Let's say the stop is 111.40.- An entry at 112.50 still yields a little better than 2:1 reward to risk.- An entry at 112.00 would yield a 5:1 reward to risk.- Then there are potential targets like 115.50, not to mention the possibility of a bullish breakout. But for now, let's not anticipate that. Let's respect the resistance in the 115 to 115.50 area.