- USD/JPY has hit fresh 6-month highs at 113.13 before paring some of the gains to currently trade at 112.96 levels.
- The greenback was buoyed across the board after Powell's optimistic testimony.
- Fed Chairman Jerome Powell reiterated that the Fed would continue to gradually raise the fed funds rate in compliance with their mandate to reach maximum employment and 2% inflation.
- Powell's comments, during the semiannual congressional testimony also suggested that lingering trade tensions will not prevent the Fed from raising interest rates.
- The pair has given up some of the gains as markets await US housing market data ahead of Powell's second round of testimony before the House Financial Services Committee.
- Technical indicators support upside. Momentum studies are bullish.
- Price finds immediate strong resistance at 200W SMA at 113.24. Break above targets 78.6% Fib at 115.65.
Support levels - 112.60 (5-DMA), 111.90 (trendline), 111.33 (21-EMA)
Resistance levels - 113.24 (200W SMA), 113.58 (88.6% Fib), 114
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 83.9716 (Bullish), while Hourly JPY Spot Index was at 0.498775 (Neutral) at 1145 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
