FUNDAMENTAL OVERVIEW USD:The US dollar weakened across the board on Tuesday after a couple of headlines pointed to an imminent US-Iran deal. The weakness started when Qatari mediators reported that the language for a possible US-Iran agreement had been drafted.The momentum then gathered pace when US Treasury Secretary Bessent confirmed that an Iran deal could have come as soon as yesterday and would have included the reopening of the Strait of Hormuz.The US dollar losses started to get trimmed late yesterday probably because the anticipated timeline for the deal passed without an announcement. Nevertheless, the hopes for a deal will likely keep the greenback on the backfoot for now unless we get another escalation. The next major event will be the US CPI report next week. The data will be critical for the September FOMC decision and the Jackson Hole Symposium. A hot report will likely trigger a rally in the US dollar, with traders increasing rate hike bets. A soft report, on the other hand, should reduce further the risk of Fed tightening and put more pressure on the greenbackJPY:On the JPY side, not much has changed after last week’s massive intervention. The only notable development was US Treasury Secretary Bessent’s remarks to CNBC potentially hinting to a faster BoJ tightening pace. In fact, he stated that "it will require policy to follow up on the intervention" and added that the "US would not have joined if it was not optimistic about Japan policies”. Japan’s currency diplomat Mimura stated that he had a shared understanding with the BoJ following the intervention, which might be another hint to faster rate hikes. Overall, without a change in the fundamentals, the interventions will continue to be just clearing events to rebuild positions at better levels. The trend is unlikely to change without a dovish repricing in Fed interest rate expectations or a faster BoJ tightening pace. USDJPY TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that USDJPYis slowly recovering ground after the intervention and position squaring took the pair near the 155.00 handle. There’s not much we can glean from this timeframe as the nearest key resistance stands around the 160.50 level. If the price gets there, we can expect the sellers to step in with a defined risk above the resistance to position for a drop back into the 155.00 handle. The buyers, on the other hand, will look for a break to increase the bullish bets into new highs.USDJPY TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we have a minor resistance zone around the 158.50 level where the price got rejected from several times. That’s where we can expect the sellers to step in with a defined risk above the resistance to position for a drop back into the 155.00 level. The buyers, on the other hand, will look for a break to increase the bullish bets into the 160.50 resistance. USDJPY TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we have a minor support zone around the 157.20 level. If we get a pullback, we can expect the buyers to step in around the support with a defined risk below it to keep pushing into new highs, while the sellers will look for a break to pile in for a drop into the 155.00 handle. The red lines define the average daily range for today. UPCOMING CATALYSTSToday, we get the latest US Jobless Claims figures. Tomorrow, we conclude the week with the US NFP report. This article was written by Giuseppe Dellamotta at investinglive.com.