FundamentalOverviewThe USD eventually erasedall the CPI gains as the US inflation figures weren’t enough to trigger a morehawkish repricing in interest rates expectations. The market is still expectingroughly two rate cuts by year-end for the Fed. Overall, we are just in rangeboundmode given the lack of meaningful changes in conditions in the past few weeks.On the JPY side, the rulingbloc lost the majority in the upper house which makes striking a trade dealwith the US more complicated. Traders will now focus on how the politicallandscape changes. Options include a new PM (although Ishiba said he will continue), new alliances and so on. Thekey things to watch is how political shifts will change expectations for fiscalpolicy and trade negotiations with the US. USDJPYTechnical Analysis – Daily TimeframeOn the daily chart, we cansee that USDJPY couldn’t sustain the rally above the key 148.30 resistance and eventually fell back below thelevel. The sellers will likely keep on piling in around these levels with a definedrisk above the resistance to position for a drop into the 142.35 support. Thebuyers, on the other hand, will want to see the price breaking above theresistance again to start targeting the 151.20 level next.USDJPY TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee that we had an upward trendline defining the bullish momentum. Theprice broke below the trendline, which might be a signal of a change in theshort-term trend. We have a minor support zone around the 147.00 handle whichthe sellers will need to break through to increase the bearish bets into newlows. The buyers, on the other hand, will likely keep on leaning on the supportto target new highs.USDJPY TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart,there’s not much else we can add here as the buyers will look for dip-buyingopportunities around the support, while the sellers will look for a downsidebreakout to push into new lows. The red lines define the average daily range for today.UpcomingCatalystsToday we have Fed Chair Powell speakingbut given the blackout period, he won’t comment on monetary policy. OnThursday, we get the Japanese and US Flash PMIs, and the latest US JoblessClaims figures. On Friday, we conclude the week with the Tokyo CPI. Watch the video below This article was written by Giuseppe Dellamotta at investinglive.com.