FundamentalOverviewThe USD extended the gainsfurther in the past days following strong US data and a slightly more hawkishFed Chair Powell. The US ADP and Q2 GDP surprised both to the upside and Fed ChairPowell didn’t open the door for a cut in September as was expected but dodgedthe questions by saying that they would look at the totality of the data. This has caused a hawkishrepricing in interest rates expectations with the market now seeing 35 bps ofeasing by year-end compared to 47 bps before the data and Powell’s speech. Thefocus today will be on the US NFP report. Fed Chair Powell mentioned that theyare focused on the unemployment rate, so that’s going to be the one to watch.On the JPY side, the BoJ leftinterest rates unchanged and revised inflation forecasts higher as expected. Theyen didn’t move much on the decision but was then sold across the board as GovernorUeda downplayed inflation risks and didn’t sound concerned about the exchangerate at all. For more JPY appreciationwe will likely need weak US data to increase the dovish bets on the Fed orhigher inflation figures for Japan to price in more rate hikes than currentlyexpected. Other potential positive driver could be signs of more fiscal supportas that will likely put upward pressure on inflation.USDJPYTechnical Analysis – Daily TimeframeOn the daily chart, we cansee that USDJPY eventually broke through the key resistance zone around the 148.30 level andextended the gains into the 151.00 handle. The sellers will likely step inaround these levels with a defined risk above the 151.20 swing point toposition for a pullback into the 148.30 level. The buyers, on the other hand,will look for a break higher to increase the bullish bets into the 155.00handle next.USDJPY TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee that we have an upward trendlinedefining the bullish momentum. If we get a pullback into the trendline, we canexpect the buyers to lean on it to position for a rally into new highs. Thesellers, on the other hand, will look for a break lower to increase the bearishbets into the 142.35 level next.USDJPY TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart, we cansee that we have another minor upward trendline defining the bullish momentumon this timeframe. The buyers will likely continue to lean on the trendlinewith a defined risk below it to keep pushing into new highs. The sellers, on theother hand, will look for a break lower to extend the pullback into the nexttrendline. The red lines define the average daily range for today.UpcomingCatalystsToday we conclude the week with the US NFP report and theUS ISM Manufacturing PMI. Watch the video below This article was written by Giuseppe Dellamotta at investinglive.com.