According to Jinshi Data, USD/JPY was boosted by the "Trump deal" and rebounded to 158.79. Powell expressed more confidence that inflation will reach the 2% target, which was seen as a signal that a rate cut is imminent.
Key inflation data for Japan will be released this Friday, with national CPI expected to rise 2.9% year-on-year, the highest level since October last year. Core CPI is also expected to rise, far exceeding the Bank of Japan's 2% target, providing a reason for the Bank of Japan to raise interest rates at its July meeting.
The yield differential between Japan and the U.S. is likely to continue to hinder USD/JPY movements, at least in the near term.