• USD/JPY to remain supported on dips amid Fed rate outlook, risk rally

• Closed unchanged Tue in choppy trading after recovering from sharp 0.6% drop

• Fell on Iran peace deal optimism but buyers returned on Trump comments

• Tehran says ready to reopen Strait of Hormuz if US eased military pressure

• Trump says peace deal would come after US midterm elections, threatens Iran

• Hawkish Fed comments, Japan fiscal concerns offset intervention fears

• Tokyo intervention resolve will continue to be tested; Japanese holiday Wed

• Support 157.00, 156.50-60, resistance 158.00-10, 158.60-65

• Tuesday range 156.82-157.77, Asia 157.42-157.55
Inflation gauges:

(Krishna Kumar is a Reuters market analyst. The views expressed are his own.)