Institutions: Yen may benefit from the discourse of the UK general election and Powell's inflation slowdown.

On July 5, Jinshi Data reported that analysts believe that the upcoming testimony of Federal Reserve Chairman Powell in the US Congress will make the weak US dollar the market theme, and the yen may have a brief respite. In addition, if the pound stabilizes after the UK general election, it may intensify the short-term downward trend of the US dollar. At the same time, the recent remarks by Japanese authorities about the yen have rarely made traders doubt that Japan is setting a trap for intervention. If Powell’s comments on the slowdown in inflation put pressure on the US dollar exchange rate, it would be more reasonable to buy the yen next week. However, the missing link behind the continued rise of the yen is still the Bank of Japan. If the Bank of Japan, like in June, continues to remain unchanged on July 31, foreign exchange traders will prepare for the USD/JPY to move towards the 170 zone.