As expected, the Federal Reserve (Fed) raised the benchmark interest rate from 0.50% to 0.75%. The FOMC wanted us to know that it is looking at possibly 3 more rate hikes in 2017. This is an increase from the 2, it previously planned for 2017, or at least the market had thought. Economic outlook has been flat. Growth is low, but "not as fragile" as before, according to Marcomarket.com. Inflation expectation on the other hand is ticking up. Official FOMC Press ReleaseProjectionsThe FOMC announcement of monetary policy stoked more appetite for the US Dollar. As we can see in the daily chart, price cleared a support/resistance pivot where it was stalling at. USD/JPY DailY Chart 12/15(click to enlarge)Bullish Continuation:- The fact that the FOMC foresees 3 more rate hikes rather than 2 means it is slightly more hawkish than before. - This is based on inflation expectations.- The USD/JPY continued higher, and should be able to hit 120 in my opinion.- With the Fed being more hawkish, and the Bank of Japan (BoJ) not close to turning the corner from its ultra-dovish stance, the USD/JPY should be able to push above 120 as well. - In fact, I think in 2017, the 125.90 high from 2015 will be challenged.