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On May 12th, Danske Bank analyst August Hyldgaard stated in a report that Tuesdays U.S. consumer inflation data could solidify the Federal Reserves wait-and-see stance. "If the data exceeds expectations and is coupled with strong labor market data, it will allow the Fed to maintain its current wait-and-see mode."Market pricing indicates that traders have fully priced in three 25-basis-point rate hikes by the Bank of England in 2026.May 12th - At the 2026 APEC Food Safety Cooperation Forum held today, it was learned that in the first four months of this year, Chinas total food import and export trade reached 594.86 billion yuan, a year-on-year increase of 6.5%. Imports totaled 409.22 billion yuan, up 8.8% year-on-year, while exports reached 185.64 billion yuan, up 1.9% year-on-year. In the first four months, my countrys food imports and exports to other APEC economies totaled 350.38 billion yuan. Imports reached 229.83 billion yuan, and exports reached 120.55 billion yuan. Meat, dairy products, and alcoholic beverages accounted for 21.48 billion yuan, 20.11 billion yuan, and 11.83 billion yuan respectively. Wang Jun, Deputy Director of the General Administration of Customs, explained that the Asia-Pacific region is vast, and the resource endowments, development stages, and governance models of APEC economies are not entirely the same. China Customs is willing to further deepen cooperation with all economies, embrace the digital revolution and regulatory innovation, and promote trade facilitation through technological empowerment and digital efficiency enhancement; deepen the alignment of rules and mutual recognition of standards to build an open and transparent regional food trade system; and strengthen capacity building and collaborative governance to solidify the foundation for food safety and trade facilitation.May 12th - According to the UKs Daily Telegraph, six members of Prime Minister Keir Starmers cabinet are expected to call for his resignation ahead of Tuesdays cabinet meeting. The newspaper, citing cabinet sources, reports that the six are: Home Secretary Shabana Mahmood, Defence Secretary John Healey, Energy Secretary Ed Miliband, Culture Secretary Lisa Nandy, Foreign Secretary Yvette Cooper, and Health Secretary Wes Streeting.Hungarian Finance Minister nominee Kalman: A professional and public debate on the adoption of the euro will be launched.

USD/JPY Price Analysis: To consolidate as a doji near the YTD highs near 125.70 looms

Larissa Barlow

Apr 13, 2022 10:03

  • Despite its strong association with US Treasury yields, the USD/JPY trades in a range of 125.30 to 70.

  • Forecast for the USD/JPY exchange price: Although the bias remains upward, a doji near the year-to-date highs might pave the way for lower prices.

 

As the Asian Pacific day begins, USD/JPY is practically flat, up 0.05 percent, but still short of the YTD highs near 125.77, as Tuesday's price action formed a doji, implying indecision. The USD/JPY is now trading at 125.48.

 

On Tuesday, the USD/JPY hovered above 125.45 but fell rapidly on the release of mixed US inflation readings, albeit hotter than expected; the numbers were in line with forecasts.

USD/JPY Forecast: Technical Price

The USD/JPY is now trending upward, as indicated by the daily chart. A doji near the YTD highs, on the other hand, may pave the way for a correction down.

 

Meanwhile, the USD/JPY 1-hour chart indicates the pair has established a double top, but the pair may stabilize in the 125.30-77 range after breaking over 125.35.

 

The initial upward resistance for the USD/JPY would be 125.56. A break of the latter would reveal the convergence of the YTD high and the R1 daily pivot point near 125.77-80. Once cleared, 126.00 would be the next line of defense for JPY bulls.

 

On the other hand, the initial level of support for the USD/JPY would be the confluence of the 50-hour simple moving average (SMA) and the daily pivot at 125.28-30. A strong break would pave the way to the S1 daily pivot level of 124.81, followed by the 100-hour SMA level of 124.64.

 

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