FUNDAMENTAL OVERVIEWUSD:The US dollar has comeunder renewed pressure yesterday despite the lack of progress in the US-Irannegotiations and the Strait of Hormuz closure. What has been weighing on thegreenback to start the week was the news saying that Iran proposed to reopenthe Strait of Hormuz if the US blockade is lifted and then hold nuclear talkslater. This constant push for adiplomatic resolution instead of another full-fledged war has been supportingthe risk sentiment on expectations that a deal would be reached eventually. Nonetheless,the stalemate is causing oil prices to rise, and we are now basically backaround triple digit levels.Reports are also sayingthat Trump is unlikely to accept Iran’s proposal, which might keep the risksentiment in check and support the US dollar in the short-term. Overall, we arenow in a consolidation phase until the next major catalyst. Tomorrow, we have the FOMCpolicy decision and although the Fed is expected to keep everything unchangedamid the US-Iran uncertainty, there’s a risk of a more hawkish leaning due toresilient US data and a longer than expected US-Iran war. A neutral Fed shouldn’tbring much volatility, but a more hawkish one could give the US dollar a boostgiven the recent selloff.JPY:On the JPY side, the BoJtoday left interest rates unchanged at 0.75% as widely expected. The quarterlyoutlook report showed a significant upward revision for inflation and adowngrade for growth due to the US-Iran war. The highlight of the decisionthough were the three dissenters who voted for a rate hike, which gave theJapanese yen a short-term boost.Most of the gains werepared back as Governor Ueda struck a more measured tone as he noted that theywant to take a little bit more time in gauging how the Middle East situationwould affect Japan’s economy and acknowledged that underlying inflation iscurrently a bit below the 2% target. He added that they expectunderlying inflation to be around 2% from second half 2026 but admitted that hedoesn’t know how many months it would take to gauge timing of their next ratehike. All in all, the bias for the Japanese Yen remains neutral to bearish. USDJPY TECHNICALANALYSIS – DAILY TIMEFRAMEOn the daily chart, we cansee that USDJPY continues to consolidatebetween the 158.00 support and the 160.00 handle. If we get another pullbackfrom the recent highs, we can expect the buyers to step in again around thesupport with a defined risk below it to position for a rally into the 162.00handle. The sellers, on the other hand, will want to see the price breakinglower to open the door for a drop into the major upward trendline around the155.00 level.USDJPY TECHNICALANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we cansee the price broke the downward trendline and started to consolidate justabove it. We now have another minor downward trendline defining the consolidation.The sellers will likely continue to lean on it with a defined risk above it tokeep pushing into new lows, while the buyers will look for a break higher toincrease the bullish bets into the 162.00 handle next.USDJPY TECHNICALANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, there’snot much we can add here as the sellers will either look for a rejection aroundthe minor downward trendline or a break below today’s low, while the buyerswill wait for a break above the trendline to increase the bullish bets into newhighs. The red lines define the average daily range for today. UPCOMING CATALYSTSToday we get the US Consumer Confidence report. Tomorrow, we have the FOMCpolicy decision. On Thursday, we get the US Q1 GDP, the US Employment CostIndex and the latest US Jobless Claims figures. On Friday, we conclude the weekwith the US ISM Manufacturing PMI. This article was written by Giuseppe Dellamotta at investinglive.com.