FUNDAMENTAL OVERVIEWUSD:The US dollar strengthenedyesterday after Iran rejected the proposed ceasefire and outlined its ownconditions that included closure of all US bases in the Gulf, reparations forthe attacks, lifting of all sanctions and allowing Iran to retain its missileprogram without restrictions. These conditions are ofcourse unacceptable for the US, so we are now in a deadlock. For now, the USdollar is likely to remain supported until there is an official de-escalation.JPY:On the JPY side, nothinghas changed as lack of progress on the inflation front and geopolitical riskswill likely keep weighing on the currency. The latest Japanese CPI report showed further easing ininflation with the Core figure falling well below the BoJ’s 2% target. The BoJ today has announcedthat it will begin publishing data on the estimatedcore consumer price inflation rate but even their estimates are not reallycalling for immediate action. On the wage growth side, theinitial outcome of the spring wage negotiationspoints to a third straight fiscal year in which Japan sees average wage hikesof above 5%. This should keep the tightening bias intact, but the central bankmight want to wait for the US-Iran war to end to avoid exacerbating growthfears.USDJPY TECHNICALANALYSIS – DAILY TIMEFRAMEOn the daily chart, we cansee that USDJPY bounced on the 157.65 supportand it’s now approaching the resistance around the 160.00 handle. The buyers continueto target the 161.95 level, but a break above the 160.00 level is needed to openthe door for higher prices. There’s not much else we can glean from thistimeframe, so we need to zoom in to see some more details. USDJPY TECHNICALANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we cansee more clearly the consolidation between the 157.65 support and the 159.75resistance. We can expect the sellers to step in around the resistance with adefined risk above it to position for a drop back into the support. The buyers,on the other hand, will look for a break higher to increase the bullish betsinto new highs.USDJPY TECHNICALANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we havea minor upward trendline defining the bullish momentum on this timeframe. If weget a pullback, we can expect the buyers to lean on the trendline with adefined risk below it to keep pushing into new highs, while the sellers willlook for a break lower to pile in for a drop into the 157.65 support next. Thered lines define the average daily range for today. UPCOMING CATALYSTSToday we get the latest US Jobless Claims figures. This article was written by Giuseppe Dellamotta at investinglive.com.