FundamentalOverviewThe USD rallied across theboard last week after a slate of strong US data. The focus was mainly on Jobless Claims which beat expectations by a bigmargin with Initial Claims falling to the lowest level since July andContinuing Claims improving further. This triggered a hawkish repricing ininterest rates expectations since the Fed started cutting rates solely due toweaker labour market data. This means that if wecontinue to get stronger labour market data, the Fed could start turning morehawkish again and we might not get another cut in October, or more probably inDecember. Therefore, there’s still plenty of room for the US dollar to appreciatein case of strong data as the market’s pricing remains too dovish. The Fedprojected 75 bps of easing by the end of 2026, while the market is stillpricing 104 bps. The greenback erased allthe gains triggered by last week’s data in the meantime as we are likelyexperiencing a pullback after a very strong rally. Other possible reasonsinclude the government shutdown fears and quarter-end flows. On the JPY side, we haven’tgot any meaningful change in fundamentals in the meantime. The BoJ keptinterest rates unchanged as expected at the last meeting, but the market gotsurprised by two members voting for a rate hike. The yen initially rallied butonce Governor Ueda started speaking, the gains began to fade and eventually goterased completely as Ueda downplayed the dissenting votes. USDJPYTechnical Analysis – Daily TimeframeOn the daily chart, we cansee that USDJPY broke above the key resistance zone around the 148.50 level andextended the rally into the 150.00 handle before pulling back into theresistance now turned support. This is where we can expect the buyers to stepin with a defined risk below the support to position for a rally into the151.00 handle next. The sellers, on the other hand, will want to see the pricebreaking lower to pile in for a drop into the major trendline around the 146.50 level.USDJPY TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee more clearly the pullback into the previous resistance now turned support. There’s not much else we can addhere as the buyers will look for a bounce and a rally into new highs, while thesellers will look for a break lower to target the major trendline.USDJPY TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart, we cansee that we have a minor downward trendline defining the current pullback. Thesellers will likely continue to lean on the trendline to keep pushing into newlows, while the buyers will look for a break higher to increase the bullishbets into the 151.00 handle. The red lines define the average daily range for today.UpcomingCatalystsTomorrow we get the BoJ Summary of Opinions,the US Job Openings data and the US Consumer Confidence report. On Wednesday,we have the Japanese Tankan report, the US ADP and the US ISM ManufacturingPMI. On Thursday, we get the latest US Jobless Claims figures. On Friday, weconclude the week with the US NFP report and the US ISM Services PMI. Keep alsoan eye on Fed speakers. This article was written by Giuseppe Dellamotta at investinglive.com.