FundamentalOverviewThe USD recovered most ofthe losses triggered by Powell’s dovish tilt at the Jackson Hole Symposium. Tradersare now focused on the US labour market data due next week that will culminatewith a crucial NFP report on Friday. In fact, the data will influence interestrates expectations greatly.Right now, the market ispricing an 84% probability of a rate cut in September and a total of 54 bps ofeasing by year-end. Strong data might take the probability for a September cuttowards a 50/50 chance but will certainly see a more hawkish repricing furtherdown the curve and support the dollar. Soft data, on the other hand, willlikely see traders increasing the dovish bets with a third cut by year-endbeing priced in and weighing on the greenback.On the JPY side, thecurrency has been rallying on the back of the dovish expectations for the Fed. Formore JPY appreciation we will need weak US data to increase the dovish bets onthe Fed or a series of higher inflation figures for Japan to price in more ratehikes than currently expected. Another potential positive driver could be signsof more fiscal support as that will likely put upward pressure on inflation.USDJPYTechnical Analysis – Daily TimeframeOn the daily chart, we cansee that USDJPY continues to range beneath the major 148.50 resistance zone as traders are waitingfor the key US data next week. The sellers will likely continue to lean on the resistanceto keep targeting the major trendline around the 145.50 level,while the buyers will look for a break higher to pile in for a rally into the151.00 handle next.USDJPY TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee that we’ve been stuck in a range for the entire month as traders have beenwaiting for Powell’s speech and now for the key data releases next week.There’s not much we can glean from this timeframe, so we need to zoom in to seesome more details.USDJPY TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart, we cansee that we have a minor upward trendline defining the bullish momentum on thistimeframe and a minor resistance around the 147.95 level. The buyers willlikely continue to lean on the trendline to keep pushing into new highs, whilethe sellers will look for a break lower to increase the bearish bets into newlows. The red lines define the average daily range for today.UpcomingCatalystsTomorrow we get the latest US Jobless Claimsfigures. On Friday, we conclude the week with the Tokyo CPI and the US PCEprice index. This article was written by Giuseppe Dellamotta at investinglive.com.