FundamentalOverview

Last week, despite the higher-than-expectedinflation figures and a less dovish Powell, the US Dollar couldn’t extend thegains. The market’s pricing remained largely unchanged at three rate cuts bythe end of 2025.

This might be a signal thatthe market is now fine with the current pricing, and we will need strongerreasons to price out the remaining rate cuts. This could open the door for somepullbacks and general US Dollar weakness.

USDJPYTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that USDJPY pulled back to the major trendline.This is where we can expect the buyers to step in with a defined risk below thetrendline to position for a rally into new highs. The sellers, on the otherhand, will want to see the price breaking lower to increase the bearish bets intothe 152.00 support.

USDJPY TechnicalAnalysis – 4 hour Timeframe

On the 4 hour chart, we cansee more clearly the recent price action with some consolidation now around thetrendline. There’s not much else we can add here as the buyers will look for a bounceand a rally into new highs, while the sellers will look for a break lower totarget the 152.00 support.

USDJPY TechnicalAnalysis – 1 hour Timeframe

On the 1 hour chart, we cansee even better the recent price action with multiple spikes below thetrendline. Again, there’s not much we can add here as the buyers will look fora bounce and the sellers for a break. The red lines define the average daily range for today.

UpcomingCatalysts

Thisweek is pretty empty on the data front with the most important releases scheduledfor the latter part of the week. On Thursday, we get the latest US JoblessClaims figures, while on Friday we conclude the week with the Japanese and USPMIs.

See the video below