FUNDAMENTAL OVERVIEWUSD:The US dollar weakened acrossthe board yesterday after Trump basically confirmed the WSJ report in a Truth Social post that he would be open to end thewar with Iran without the Strait of Hormuz opening condition.This turned the sentimentaround in the markets and the positive mood improved further later in the daywhen the Iranian President said that they were ready to end the war but wantedguarantees.As you would expect,traders went back to price rate cuts for the Fed with 13 bps of easing seen byyear-end compared to 3 bps yesterday. JPY:On the JPY side, thecurrency strengthened just because of dollar weakness as the Japanese macroconditions aren’t really pointing toward further tightening at the moment. In fact, the latest Tokyo CPI showed core inflation fallingfurther below the BoJ’s 2% target. There’s clearly no urgency to hike rates,but the BoJ might look to deliver one if the yen weakens much further. USDJPY TECHNICALANALYSIS – DAILY TIMEFRAMEOn the daily chart, we cansee that USDJPY continues to pull back intothe 157.65 support. If the price gets there, we can expect the buyers to stepin with a defined risk below the support to position for a rally into the161.95 level next. The sellers, on the other hand, will look for a break topile in for a drop into the major trendline around the 154.00 handle.USDJPY TECHNICALANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, wehave a minor downward trendline defining the current pullback. The sellers willlikely continue to lean on the trendline to keep pushing into new lows, whilethe buyers will look for a break to pile in for a rally into new highs.USDJPY TECHNICALANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, there’snot much we can add here as the sellers will have a better risk to reward setuparound the downward trendline, while the buyers will look for a bounce aroundthe support or a break above the downward trendline to position for new highs. Thered lines define the average daily range for today. UPCOMING CATALYSTSToday we have the US ADP, the US Retail Sales 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. Do note that we have also Trumpaddressing the nation today at 21:00 ET/01:00 GMT giving an “important” updateon Iran. This article was written by Giuseppe Dellamotta at investinglive.com.