USDJPY: USD's miraculous recovery journey with JPY downturn

S&P500 futures have recorded slight losses before the market opens as investors are being cautious about the upcoming speech by Federal Reserve (Fed) chair Jerome Powell at the European Central Bank (ECB) forum of Central Banking. Investor sentiment has become more risk-averse as they hope that Powell will continue to express a cautious stance.

The US Dollar Index has experienced a significant increase, supported by expectations of a cautious approach from Powell and stronger US Durable Goods Orders data. The US Census Bureau reported that Durable Goods Orders grew by 1.7%, surpassing the market's expectation of a 1% decline. This data for May has outperformed the previous figure of 1.2% in April.

Jerome Powell is expected to provide a cautious approach as core inflation in the US economy remains persistent and labor market conditions continue to be tight, despite higher interest rates and strict credit conditions set by commercial and regional banks.

On the other hand, a Reuters survey suggests that the Bank of Japan (BoJ) may intervene in foreign exchange (FX) movements if the Japanese Yen weakens to 145.00 against the US Dollar. Japanese Finance Minister Shunichi Suzuki reiterated his commitment to respond appropriately to excessive FX movements if necessary.

Later this week, the market will closely monitor Tokyo

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