The USD/JPY pair moves higher to near 149.00 in North American trading hours on Thursday. The pair gains as the US Dollar (USD) rallies sharply in the aftermath of the Federal Reserve's (Fed) monetary policy outcome. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, jumps to near 104.00 after attracting significant bids near the five-month low of 103.20.

On Wednesday, the Fed kept interest rates unchanged in the range of 4.25%-4.50%, as expected, for the second time in a row. The central bank also maintained its forecast of two interest rate cuts this year. Fed Chair Jerome Powell stated that the central bank is not in a hurry to cut interest rates as the uncertainty is "unusually elevated" amid the implementation of new policies by the new administration.
Jerome Powell added that tariff policies by President Donald Trump could slow down the growth rate and accelerate inflationary pressures.

On the economic data front, Initial Jobless Claims for the week ending March 14 come in at 223K, almost in line with estimates and the former release.

Though investors have underpinned the US Dollar against the Japanese Yen (JPY), it is outperforming against other peers amid an uncertain market mood. Market sentiment seems unfavorable for risky currencies as President Trump is poised to introduce reciprocal tariffs on April 2, which would result in a sharp slowdown in global economic growth.
Domestically, the Bank of Japan (BoJ) kept interest rates unchanged at 0.5% on Wednesday and guided that uncertainty surrounding Japan's economy and prices remain high.

Source: Fxstreet