FundamentalOverviewThe USD rallied across theboard yesterday following an aggressive selloff in the GBPUSD pair as the UK30yr yield jumped into a new cycle high. Some of the gains were eventuallyerased but the greenback remained supported as the price action continues to bechoppy as we head into the key US data.In fact, traders will befocused on the US ADP and NFP reports. The data will influence interest ratesexpectations greatly. Right now, the market is pricing a 91% probability of arate cut in September and a total of 55 bps of easing by year-end. Strong data might take theprobability for a September cut towards a 50/50 chance but will certainly see amore hawkish repricing further down the curve and likely support the dollar.Soft data, on the other hand, will likely see traders increasing the dovishbets with a third cut by year-end being priced in and weighing on thegreenback.On the JPY side, we haven’tgot meaningful changes in the fundamentals. In fact, the currency has been rallyingon the back of the dovish expectations for the Fed. For more JPY appreciationwe will need weak US data to increase the dovish bets on the Fed or a series ofhigher inflation figures for Japan to price in more rate hikes than currentlyexpected. USDJPYTechnical Analysis – Daily TimeframeOn the daily chart, we cansee that USDJPY eventually rallied back into the major 148.50 resistance zone. This is where we canexpect the sellers to step in with a defined risk above the resistance toposition for a drop into the major trendline. The buyers, on the other hand,will look for a break higher to increase the bullish bets into the 151.00 handlenext. USDJPY TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee that we’ve been stuck in a range for a month as traders have been waitingfor the key US data before picking a direction. There’s not much else we canglean from this timeframe, so we need to zoom in to see some more details.USDJPY Technical Analysis – 1 hour TimeframeOn the 1 hour chart, we cansee that we might be forming a smaller range at the resistance. The buyers willwant to see the price breaking above the recent high at 148.95 to extend therally into the 151.00 handle. The sellers, on the other hand, will look for abreak below the 147.95 level to pile in for a drop into the 146.63 support. Thered lines define the average daily range for today.UpcomingCatalystsToday we have the US Job Openings data. Tomorrow,we get the US ADP, the latest US Jobless Claims figures and the US ISM ServicesPMI. On Friday, we conclude the week with the Japanese Wage Growth data and theUS NFP report.Watch the video below This article was written by Giuseppe Dellamotta at investinglive.com.