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[IMAGE] Forums Discuss these points in the Forums: Forexnews Forum T= echnicals Live Charts Analysis available from: Cornelius Luca J.P. Chorek= Technical Research Ltd. Charts & News featuring Standard & Poor's = 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 22, 7:00 PM: EUR/$..0.8881 $/JPY..133.68 GBP/$..1.4398 $/C= HF..1.6592 Japanese Forex Trading Preview by Darko Pavlovic At 6:50:00 P= M Japan Nov All industries index (exp -0.2%, prev -0.5%) Japan Nov all tert= iary index (exp 0.5%, prev -0.4%) USD/JPY is trading around 133.70, eased = by nearly two-third yen from a fresh 3-year high of 134.47 due to profit ta= king on the dollar's sharp gains. Many analysts interpreted the US endorsed= a weak yen after the Treasury Secretary O'Neill's comments overnight that = markets should determine currency exchange rates. Nonetheless, O'Neill emph= asized that manipulating FX rates would not solve Japan's economic difficul= ties. In addition, O'Neill reaffirmed that the US was committed to its "str= ong dollar" policy, although the US is only likely to support weakness in t= he yen in hand with the writing-off of bad loans, acceleration of structura= l reforms and market deregulation. O'Neill will have a chance to further ex= pand his views on Japan's economy and forex levels after he meet with the B= oJ Governor Hayami who is a vocal opponent of weak yen policy. US Treasury = Secretary will give a press conference around 1 AM EST. PM Koizumi said tha= t Japan's banks are not in need a new round of public fund injections at th= e moment, but the government is wary if it becomes necessary. If, in the f= uture, there is a risk that great harm will fall upon the financial system,= we will take flexible measures," Koizumi said. Finance Minister Shiokawa s= aid to his US counterpart that the Japanese government will urge the BoJ to= provide more liquidity to the market as part of efforts to overcome deflat= ion. During a 40-minute meeting with O'Neill, Shiokawa stressed the Japanes= e government's determination to bring deflation under control. According to= BoJ branch managers for Osaka, Nagoya, Sapporo and Fukuoka corporate senti= ment is worsening further and production continues to decline. Some branch = managers warned of the growing divide among companies in areas such as corp= orate earnings. Japanese Nov all industries activity rose 0.4% from the pre= vious month. The tertiary sector index rose 1.7% in November from the previ= ous month. Support is seen at 133.60, backed by 133.0 and 132.60. Upside ca= pped at 135.0 and 135.50 EUR/USD is trading around 88.80 as the EUR/JPY ro= se to a session high of 118.70 after more bad data from Japan confirmed the= weakness in the second largest economy. The euro was upon the release of t= he largest rise in the US Index of Leading indicators in 6 years. In spite = of the greenback's initial strong performance, the euro and Swiss franc had= recovered by the end of US trading, while the pound and yen stemmed their = losses as falling stocks weighed on the dollar. Also giving the single curr= ency a boost was ECB Welteke's conviction that Eurozone inflation will fall= below 2% in spring. However, Welteke foresaw a possible rise in January Eu= rozone prices, though the inflation downtrend is intact. In spite of his sl= ight pessimism, many market players were cheered by the possibility that th= e European Central Bank will lower rates once inflation breaks below the ba= nk's 2% target. Resistance is seen at 89.10-- the 50% Fibonacci retracement= of the same move, and 89.55. Support is viewed at 88.10, 87.70 and 87.50--= the 31.8% Fibonacci retracement of the move from 82.25 to 95.96. The maj= or event of this week will be Fed Chairman Greenspan's testimony before the= Senate Budget Committee on Thursday since markets are anxious to hear his = remarks on the economy and any clues they might glean about the central ban= k's monetary policy. In particular, economists believe that Greenspan's tes= timony may also be supportive to the dollar following a report in the Washi= ngton post that according to Fed sources, Greenspan "sounded more pessimist= ic than intended about the prospects for U.S. economic recovery" in his Jan= uary 11 speech. This was confirmed today by Dallas Fed President McTeer who= said that Greenspan's speech on January 11 was not quite as negative as so= me thought. McTeer also pointed out that the US economy is looking much bet= ter than it was 2 months ago. According to the sources, the Fed Chairman is= likely to comment more positively about the current state of the US econom= y on Thursday, and therefore markets are now pricing in less than a 30% cha= nce of a rate cut at the Jan 30 meeting, leaving the majority to believe ra= tes will be held steady at a 40-year low of 1.75%. This week's key US indi= cators include jobless claims and existing home sales. Fed Chairman Greensp= an's testimony before the Senate Budget Committee will be the major event o= f the week, with markets cautious to hear his remarks on the economy. From = the Eurozone, major data due for release consist of Euroarea labor costs, G= erman CPI, Italy's ISAE consumer confidence survey, ECB monthly bulletin, G= erman PPI, Italian CPI, Italy's ISAE industrial confidence survey, Italian = retail sales and Spanish PPI. Economic highlights from Japan comprise the t= rade balance, index of tertiary sector activity, corporate service prices a= nd consumer prices. =09[IMAGE] Audio Mkt. Analysis Dollar Retreats on O= 'Neill's Balanced Words Articles & Ideas NAM & the Strong Dollar: P= hase II Philly Fed-Supported Optimism Articles & Ideas Forex Glossa= ry Economic Indicators Forex Guides Link Library [IMAGE] =09 =09=09[IMAGE][IMAGE] [IMAGE][IMAGE]=09 =09=09 This e-mail is never sent unsolicited. If you wish to unsubscribe fr= om this or any other Forexnews.com newsletters, please click here . Any op= inions expressed by representatives of Forexnews.com or its affiliates as t= o the commentary, market information, and future direction of prices of spe= cific currencies reflect the views of the individual analyst, and do not ne= cessarily represent the views of Forexnews.com or its affiliates in any way= . In no event shall Forexnews.com or its affiliates have any liability for = any losses incurred in connection with any decision made, action or inactio= n taken by any party in reliance upon the information provided in this mate= rial; or in any delays, inaccuracies, errors in, or omissions of informatio= n. =09
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