Yes, it certainly sounds like she is holding. She'll also likely be tumbling the eggs in her mouth, so it sort of looks like she's chewing gum.
What should you do? Well, you have three options.
1. Leave it. Only breed if you have a genuine interest in doing it, these fish are bred plenty already and it takes some work and dedication, sometimes the heart to cull out inferior specimens. To raise a brood of them to any decent selling size you'll need at least a 20 gallon.
2. Set up a fry tank. Breeder nets are much too small to raise these fry, so you'll need one anyway. Some people move the female right away, some will wait. If the female is not under stress in the main tank then I prefer to leave her in the environement until the very end before moving her - it's less stressful then forcing her to get used to the fry tank. Because I wait, she'll often spit in the net as I move her, in which case she can just go right back into the main tank.
3. Wait until near the end of the holding period and strip the fry right into the fry tank, then return the female to the main tank. If you choose this method, make sure you have a good understanding of the process or you can hurt the mother.
I hope you have plans of removing that JD before it starts to kill your current fish.