Anna 
During the early European hours on Monday, the USD/JPY pair snapped its three-day losing streak, trading around 153.70. This rebound in the USD/JPY could be attributed to the recovery in the US Dollar (USD).
The US Dollar Index (DXY), which measures the USD against six major currencies, is hovering around 105.10 at the press time. However, lower US Treasury yields may limit the Greenback’s advance.
The US Dollar faced challenges following softer-than-expected US jobs data released on Friday, reigniting expectations for potential interest rate cuts by the US Federal Reserve (Fed) later this year. The prevailing risk appetite is likely to persist this week, bolstered by Fed Chair Jerome Powell’s relatively dovish stance on monetary policy outlook during Wednesday’s session.
Federal Reserve Bank of Chicago President Austan Goolsbee, speaking to Bloomberg TV on Friday, described the April labor market data as robust. Goolsbee emphasized the Fed’s commitment to evaluating inflation reduction strategies, noting that if the Fed maintains a restrictive stance for an extended period, it must consider the employment aspect of its mandate.
In Japan, markets are closed on Monday due to a national holiday, with intervention risks lingering. Last week, the Japanese Yen (JPY) appreciated amidst potential government intervention by Japanese authorities. According to Reuters, data from the Bank of Japan (BoJ) suggested that Japanese authorities may have allocated approximately ¥6.0 trillion on April 29 and ¥3.66 trillion on May 1 to reinforce the JPY.
