USD:The US dollar has recently been driven mainly by growth concerns rather than inflation fears. In fact, despite hotter US inflation data last week, Treasury yields dropped significantly and rate hike probabilities saw a slightly dovish repricing. Given the overstretched long positioning in the greenback, we’ve started to see an unwind which could extend further if growth concerns strengthen. That’s why tomorrow’s US Flash PMIs could be an important catalyst. Strong data could quell those fears and give the US dollar a boost. A soft report, on the other hand, will likely increase growth concerns and put further pressure on long-term Treasury yields and the greenback.JPY:On the JPY side, the currency has started to act like a safe haven as market’s focus shifted to growth. The changes in risk sentiment have been responsible for the daily ebb and flow as BoJ interest rate expectations remained largely unchanged. The BoJ is expected to hike by 25 bps in December and deliver two more rate hikes in 2027. If global growth deteriorates, though, the central bank might find itself once again hiking into a slowdown. For background, the BoJ has often been criticised for tightening too late because deflation fears have always clouded the central bank’s judgement. This time may not be so different, but the JPY would still be supported in case of a global slowdown due to extreme bearish positioning and safe haven flows. USDJPY TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that USDJPYis consolidating between the 155.00 support and the 160.50 resistance. There’s not much we can glean from this timeframe, as the buyers will have a better risk to reward setup around the support, while the sellers will look for short opportunities around the resistance.USDJPY TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see the price is rejecting the minor support zone around the 156.60 level. We can expect the buyers to step in here, with a defined risk below the support, to position for a rally into the 160.50 resistance. The sellers, on the other hand, will want to see the price breaking lower to pile in for a drop into the 155.00 support next.USDJPY TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, there’s not much we can add here as from a risk management perspective, the buyers will have a better risk to reward setup around the support, while the sellers will need a break to open the door for new lows. The red lines define the average daily range for today. UPCOMING CATALYSTSToday, we get the latest US Jobless Claims figures, while tomorrow we conclude the week with the Japanese CPI report and the US Flash PMIs. The developments in the Middle East, though, will remain in focus. This article was written by Giuseppe Dellamotta at investinglive.com.