• USD/JPY is volatile over the Fed and various mixed messages.
• Bears are trying to take control during Fed Powell's presser.

USD/JPY is volatile following the Federal Reserve's interest rate decision and projections. The pair jolted to the upside on the knee-jerk as the market prices in more rate hikes ahead although the pair is now turning lower during Chairman Jerome Powell's presser.

The markets are now digesting Powell's comments as well as the forecasts, projections and statement of the board.

Federal Open Market Commission statement 

key takeaways & Fed projections:

US interest rate decision actual 5.25% (forecast 5.25%, previous 5.25%).
The banking system is sound and resilient.
Fed officials see Fed funds rate at a median of 5.6% at end of 2023.
Fed policymakers see higher GDP growth in 2023, a lower unemployment rate and less progress on core inflation than they saw in March.
Holding rates steady allows for assessment of policy impact.
The extent of additional firming to hinge on the economy.
FOMC vote was unanimous.
Voted 11-0 for Fed funds rate action.
Fed will continue same pace of reducing treasury and MBS holdings.
Economic activity expanded at modest pace.
Job gains robust and unemployment remains low.
Fed median rate forecasts rise to 5.6% end-* 23, 4.6% end-* 24.
Fed officials see US GDP at 1.0% in 2023 and 1.1% in 2024.
Fed signals additional rate increases possible later this year.

All in all, this was a hawkish hold and consequently, Fed swaps no longer consider a 2023 rate cut likely.

Markets are now digesting Fed's Powell, currently taking questions from the press:

Watch Federal Reserve's chairman Jerome Powell live

Powell speech: Need to see loosening of labor market conditions continue

Powell speech: Fed projections are not a plan or decision

Powell speech: Nearly all policymakers view some further rate hikes this year appropriate

Jerome Powell comments on policy outlook as Fed keeps interest rate steady in June