USD/JPY looks to advance beyond 107.00 on Powell

• Spot managed to regain the 107.00 neighbourhood on Fed’s Powell.
• DXY climbed above the 90.00 mark, recording session tops.
• US Durable Goods, trade balance came in below expectations.

The greenback is now posting moderate gains vs. its Japanese counterpart on Tuesday, lifting USD/JPY to  the upper end of the daily range beyond 107.00 the figure.

USD/JPY higher on upbeat Powell

The recovery in the pair gained extra legs after Fed’s J.Powell stressed the strong momentum of the US economy, confirming at the same time that further rate hikes will come in a gradual fashion (as expected).

Powell also noted that risks remain roughly balanced and the Fed continues to monitor inflation, which is expected to stabilize around the Fed’s 2% target in the medium term.

Still in the US, January’s Durable Goods Orders missed initial estimate, while the trade deficit widened more than expected. Later in the session, the Conference Board will publish its consumer confidence gauge for the month of February.

In the meantime, spot is recording its third consecutive daily advance backed by the better tone around the buck and despite US 10-year yields are trading in closer to weekly lows.

USD/JPY levels to consider

As of writing the pair is up 0.13% at 107.08 and a breakout of 107.23 (high Feb.27) would expose 107.92 (high Feb.21) and then 108.02 (21-day sma). On the downside, the next support aligns at 106.38 (low Feb.26) seconded by 105.53 (2018 low Feb.16) and finally 102.54 (low Nov.3 2016).