Japanese Preview

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Interest Rates US: Japan: Eurozone: UK: Switzerland: 1.75% 0.15% 3.=
25% 4.0% 1.25-2.25% [IMAGE] =09 [IMAGE] Japanese Forex Trading =
Preview January 9, 7:00 PM: EUR/$..0.8916 $/JPY..133.02 GBP/$..1.4384 $/CHF=
..1.6569 Japanese Forex Trading Preview by Darko Pavlovic No key data. =
USD/JPY is trading near its three years high around 133.15 boosted by fresh=
comments from Economic Minister Takenaka who said currency levels should b=
e left to the markets, sparking a new yen sell. Takenaka is currently in th=
e US and markets are looking for any indication from Washington that will t=
olerate further yen weakness. The yen retraced off its 3 year lows after Ja=
pan's chief government spokesman Fukuda, said the currency's 9% drop agains=
t the dollar during the past two months was a bit rapid.'' Fukuda's comme=
nts raised speculation the government would try to slow the decline, ahead =
of Prime Minister Koizumi's trip to Southeast Asia. Japanese officials are =
in favor of a weaker yen to increase exports and help draw the economy out =
of recession. Officials from South Korea's Finance and Economic Ministry wh=
o expressed his discontent with the weakening in the yen because it created=
depression in other Asian markets. The BoJ is likely to adopt asset-backed=
commercial paper as a tool in its open-market operations when they meet ne=
xt Tuesday and Wednesday. The BoJ wants to raise wariness about credit risk=
that could start to arise in late March, the end of fiscal year in Japan. =
A total of 22 third-sector companies went bankrupt in calendar 2001, most o=
f them in regional tourism and leisure industries. Koizumi left Japan on We=
dnesday morning for a weeklong tour of five Southeast Asian nations, which =
include Philippines, Malaysia, Thailand, Indonesia and Singapore and delive=
r a speech on Japan's Southeast Asia policy in Singapore. According to the =
Ministry of Telecommunications Japan will be able to create 1.85 million j=
obs by 2005. Resistance is seen at 133.40 and 134.50. Support is viewed at =
132.20, 131.50 and 131.0. The euro is trading around 89.15 after falling =
to a one and a half week lows of 88.66 after Eurozone business climate fell=
to a 5-1/2 year low of -1.23 in December from -1.20 in Nov. The greater-th=
an-expected upward revision in Q3 labor costs and earnings to 3.3% from the=
previous 2.7% was also cause for concern. Finally, German Chancellor Schro=
eder's statement that the German government would soon announce measures to=
promote low wage job creation without hurting deficit goals worked more to=
undermine the euro than shore up the currency. The single currency benefit=
ed from fall in the US stocks, which retreated into negative territory late=
in the trading session on a combination of rumors and a large sell-order. =
The Dow fell 56 points to 10094 and NASDAQ finishing down 10 points to 2044=
. For most of the day, equities had been boosted by Cisco's announcement th=
at it anticipated an increase in its market share and planned to make acqui=
sitions to diversify its product line. Upbeat outlooks from Oracle and Coac=
h also helped lift shares. Initial support is seen at 89.0, backed by 88.80=
and 88.60. Upside capped at 89.55, 89.80 and 90.0. The Federal Reserve is=
planned to meet for its monetary policy meeting on January 29-30 in the pe=
ak of earnings season. While there are some bears who expect gloomy results=
in the first quarter compared with the previous one, other investors are b=
ullish about the equity markets' outlook given that so far earnings expecta=
tions have been fairly optimistic. This week's major US indicators compris=
e jobless claims, import and export prices, wholesale trade and PPI. Key Eu=
rozone economic releases include Euroarea GDP, ECB monthly bulletin, German=
industrial production, German foreign trade, Spanish industrial production=
, Dutch manufacturing production, French GDP, French current account, Frenc=
h CPI, Dutch CPI and Spanish CPI. Highlights from Japan consist of wholesal=
e prices, money supply and the ESRI Tokyo consumer sentiment survey. The ma=
jor event of this week will be the Bank of England's monetary policy meetin=
g on Thursday, although no rate cut is expected. =09[IMAGE] Audio Mkt. =
Analysis Takenaka Leaves Little Doubt on Japan's FX Stance Articles =
& Ideas What's Next For the Euro? A Look Back at 2001, Forex Themes for =
2002 Articles & Ideas Forex Glossary Economic Indicators Forex Gu=
ides Link Library [IMAGE] =09
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