FundamentalOverviewThe USD came under somerenewed pressure yesterday following the USCPI report. The data was mostly in line with forecasts and not strongenough to deter the market from expecting a cut in September. In fact, the pricingactually increased to 60 bps of easing by year-end compared to 57 bps beforethe CPI release. This just shows that the market is now very confident on aSeptember cut and fully prices in at least another one before the end of theyear. A September cut looks unavoidablenow and only a hot NFP report in September might get us to a 50% probability,although it would certainly diminish expectations for rate cuts after theSeptember one. For August, we have now just Fed Chair Powell’s speech at theJackson Hole Symposium as the next major event. Traders will be eager to see ifhe changes his stance as well. 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 higher inflation figures for Japan to price in more rate hikes thancurrently expected. Other potential positive driver could be signs of morefiscal support as that will likely put upward pressure on inflation.USDJPYTechnical Analysis – Daily TimeframeOn the daily chart, we cansee that USDJPY is still consolidating around the 148.00 handle as the US CPIdidn’t offer any reason to bid up the greenback further. The sellers will likelycontinue to pile in around these levels with a defined risk above the 148.50zone to position for a drop into the major trendline.The buyers, on the other hand, will want to see the price breaking above that resistancezone to increase the bullish bets into the 151.00 handle next.USDJPY TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee more clearly the consolidation around the resistance and the rejection afterthe US CPI report. There’s not much we can add here as the sellers will keep onpushing towards the major trendline around the 144.50 level, while the buyerswill wait for a break above the resistance to pile in more aggressively intothe 151.00 handle.USDJPY TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart, we cansee that the dollar is coming under renewed pressure today as the bearishmomentum from the US CPI looks set to continue until the next catalyst. A breakbelow the most recent low at 147.58 could should see the sellers increasing thebearish bets into new lows. The red lines define the average daily range for today.UpcomingCatalystsTomorrow we get the US PPI and the US JoblessClaims figures. On Friday, we conclude the week with the US Retail Sales andthe University of Michigan Consumer Sentiment report. Focus also on Fedspeak, especiallyafter yesterday's US CPI data. This article was written by Giuseppe Dellamotta at investinglive.com.