FUNDAMENTAL OVERVIEWUSD:The US dollar weakenedacross the board on Friday after the US Supreme Court struck down Trump’sreciprocal tariffs. The resulting policy uncertainty is what is likely to haveweighed on the greenback, even though nothing has actually changed.Trump has already imposednew tariffs under a different law and USTR Greer has stated that the tariffdeals remain in place and they will be honoured. Moreover, the new leviesactually reduce the effective average tariff rate.The dollar recouped most ofthe losses yesterday, but it might remain rangebound for now as traders awaitnew catalysts and further developments. The real risks remain a potentialUS-Iran military escalation which could boost the greenback on severe risk-offmood or a hawkish repricing on stronger US data which would have a positiveeffect on the USD. Fed’s Waller placed a great deal on next week’s NFP report. JPY:On the JPY side, the currencyweakened today as Mainichireported that Prime Minister Takaichi expressed reservations about furtherrate hikes with BoJ Governor Ueda in their meeting last week. At the last policy decision,Governor Ueda mentioned that April price behaviour will be a factor to mullover a rate hike, but the data hasn’t been supporting rate hikes at all. Infact, the latest Japanese CPI eased further and the TokyoCPI on Friday is expected to continue this trend. The market is expecting thenext hike in June at the earliest with a total of 46 bps of tightening seen byyear-end (two rate hikes). The Japanese yen will continue to weaken as ratehike expectations get pushed further out. USDJPY TECHNICALANALYSIS – DAILY TIMEFRAMEOn the daily chart, we cansee that USDJPY extended the gains into thedownward trendline today following the Mainichi report. We can expect thesellers to step in around the trendline with a defined risk above it toposition for a drop back into the major upward trendline. The buyers, on theother hand, will look for a break higher to increase the bullish bets into the159.00 handle next.USDJPY TECHNICALANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we cansee that the price is probing above the downward trendline. From a riskmanagement perspective, the buyers will have a better risk to reward setup aroundthe upward trendline to position for a rally into the 159.00 handle. Thesellers, on the other hand, will look for a break lower to pile in for a drop intothe 152.00 support. USDJPY TECHNICALANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we cansee that the price is trading above the upper bound of the average daily range for today. In such instances, wecan generally see some consolidation or a pullback before the next move. If doget a pullback, the buyers will likely lean on the minor upward trendline witha defined risk below it to keep pushing into new highs. The sellers, on theother hand, will look for a break lower to target the next trendline. UPCOMING CATALYSTSToday we have the weekly US ADP jobs data. On Thursday, we get the latestUS Jobless Claims figures. On Friday, we conclude the week with the Tokyo CPIand the US PPI report. Also, keep watching out for US-Iran headlines. This article was written by Giuseppe Dellamotta at investinglive.com.