FUNDAMENTAL OVERVIEWUSD:The US dollar strengthened acrossthe board on safe haven demand this week after the US-Iran conflict eruptedover the weekend. The main driver though was the market’s realisation that ratecuts might not come as soon as expected. In fact, higher oil priceswill eventually put upward pressure on inflation and the US data this week clearlyshowed that the economy has been re-accelerating since the start of the yearand not slowing down further. Traders pared back theirrate cut bets this week with the total easing by year-end now seen around 41bps vs 58 bps on Friday. Tomorrow, we have the US NFP report and all the jobsdata we got up until now suggests that we will likely get good data. JPY:On the JPY side, nothinghas changed as PM Takaichi’s opposition and, more importantly the data, haven’tbeen supporting a rate hike any time soon. The latest Japanese CPI fell belowthe BoJ’s 2% target, dealing another blow to the central bank’s efforts tofurther raise interest rates. The market is still pricinga rate hike in June at the earliest with a total of two rate hikes by year-end.This might turn out to be too optimistic. The Japanese yen will continue toweaken as rate hike expectations get pushed further out. USDJPY TECHNICALANALYSIS – DAILY TIMEFRAMEOn the daily chart, we cansee that USDJPY stalled at the key 157.65level as the sellers stepped in to position for a drop back into the majortrendline. The buyers will need a break above the swing level to extend therally into the 159.00 handle next. USDJPY TECHNICALANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we cansee the price probed below the minor upward trendline but eventually bouncedback above it. The buyers will likely continue to step in around the trendline witha defined risk below it to keep pushing into new highs. The sellers, on theother hand, will look for a break lower to increase the bearish bets into themajor trendline. USDJPY TECHNICALANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we cansee the price broke above the minor downward trendline that was defining the pullbackinto the 4-hour trendline. The buyers piled in on the break to position for arally into new highs. The sellers, on the other hand, will need to see theprice breaking lower again to regain some control and target new lows. The redlines define the average daily range for today. UPCOMING CATALYSTSToday we get the latest US Jobless Claims figures. Tomorrow, we concludethe week with the US NFP report. Continue to keep an eye on the US-Iran warheadlines as that’s what the market is focused on right now. This article was written by Giuseppe Dellamotta at investinglive.com.