USD/JPY holds at 6-month highs after Powell’s comments

• USD/JPY remains in a range around 112.50, consolidates gains.
• Fed’s Powell: We are not declaring victory here.

USD/JPY heads for the highest close since January 9 as it holds to gains. It is hovering around 112.50 unaffected by recent comments from Fed’s Chair Jerome Powell. He mentioned that he is hearing a rising level of concerns about the effects of changes in trade policy.

During the last hours, the pair remained steady moving in a small range between 112.35 and 112.55. Earlier today, USD/JPY peaked at 112.62, the highest level in six months. It pulled back finding support quickly above 112.30. It is up for the fourth-day in-a-row, back at the same level it had at the beginning of the year.

USD/JPY Levels to watch

The pair continues to move with a clear upside bias but some short-term technical indicators are at extreme overbought readings. Yesterday’s breakout above 111.30/50 opened the way to more gains and now the US dollar is looking for the next target.

To the upside, resistance levels might be located at 112.80, 113.25 and 113.65. On the flip side, supports could be seen at 111.95, 111.65 and 111.25. The key support is an uptrend line that stands at 110.60: as long as it remains above the bias will point to the upside.