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ECB Governing Council member Machrouf: Uncertainty means the ECB will make decisions on a meeting-by-meeting basis.On February 11th, BeiChen Lin, Senior Investment Strategist at Russell Investments, stated in a report that while a complete victory is not yet achieved, the Federal Reserves fight against inflation appears to be within reach. He pointed out that a more balanced labor market is helping to suppress inflation in the services sector; moreover, the inflationary pressures from tariffs are expected to gradually subside in the second half of the year. Furthermore, the continued sluggishness of the US housing market will also help control inflationary pressures. Lin believes that even if the US economy maintains trend-based growth this year, or even slightly exceeds trend levels, inflation is expected to remain benign and manageable this year and next.1. Standard Chartered Bank: -10,000; Scotiabank: +000; Capital Economics: +30,000; Oxford Economics: +30,000; 2. Bank of America: +40,000; Moodys Analytics: +40,000; Goldman Sachs: +45,000; TD Securities: +45,000; 3. ABN AMRO: +50,000; Barclays: +50,000; Morgan Stanley: +55,000; Danske Bank: +60,000; 4. DekaBank: +60,000; RBC: +63,000; HSBC: +65,000; ANZ: +70,000; 5. Westpac: +70,000; JPMorgan Chase: +75,000; Deutsche Bank: +75,000; Commerzbank: +80,000; 6. ING: +80,000; Societe Generale: +80,000; UniCredit: +80,000; Wells Fargo: +80,000; 7. Nomura: +85,000; Lloyds Banking Group: +85,000; Mizuho Securities: +90,000; UBS: +90,000; 8. Pansen Macro: +100,000; BNP Paribas: +105,000; Jefferies Group: +110,000; Citigroup: +135,000. On February 11, Saudi Arabias ambassador to Iran, Abdullah Anzi, stated on February 10 that strengthening bilateral relations between Saudi Arabia and Iran would send a clear and unambiguous signal to destructive forces in the region. He emphasized that regional issues cannot be resolved through war, and military confrontation will only exacerbate tensions. Saudi Arabia supports de-escalating regional tensions through political and diplomatic means.February 11th Futures News: 1. WTI crude oil futures trading volume was 896,471 lots, a decrease of 32,686 lots from the previous trading day. Open interest was 2,071,193 lots, a decrease of 9,447 lots from the previous trading day. 2. Brent crude oil futures trading volume was 155,978 lots, a decrease of 6,962 lots from the previous trading day. Open interest was 261,767 lots, a decrease of 1,475 lots from the previous trading day. 3. Natural gas futures trading volume was 602,356 lots, a decrease of 35,580 lots from the previous trading day. Open interest was 1,623,418 lots, a decrease of 14,347 lots from the previous trading day.

USD/JPY Price Analysis: Double Top Formation Supports Bearish Reversal, 128.00 Targeted

Daniel Rogers

May 10, 2022 10:48

After reaching a fresh multi-year high of 131.35 on Monday, the USD/JPY pair experienced a sharp decline. The difference between the new multiyear high and the previous high of 131.26, reached in the last week of April, is negligible. Therefore, the recent high may be categorized as an unsuccessful attempt to establish above the previous high.

 

The asset produced a Double Top pattern on a four-hour time frame, indicating a bearish reversal after the successful retesting of the prior highs. The key resistance is established by the high of April 28 at 131.26.

 

Notable is the flattening of the 20-period and 50-period Exponential Moving Averages (EMAs) at 130.42 and 129.94 respectively, which indicates weariness in the uptrend.

 

Meanwhile, the Relative Strength Index (14) has switched from a bullish range of 60.00-80.00 to a consolidation range of 40.00-60.00, indicating a contraction in volatility.

 

The yen bulls could enjoy a brief ride if the asset falls below the 50-EMA at 129.94, which would take the currency towards Thursday's low at 128.76. A break of the latter will bring the asset to the round level support at 128.00.

 

In contrast, the dollar bulls could regain control if the asset surpasses the multi-year high at 131.35. This will take the pair toward the 15 April 2002 high of 132.38, followed by April's high of 132.82.

USD/JPY

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