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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] USD/JPY Hits New 3-Year Hi= gh Above 133 January 9, 7:00 AM: EUR/$..0.8929 $/JPY..132.31 GBP/$..1.4414= $/CHF..1.6569 USD/JPY Hits New 3-Year High Above 133 by Jes Black No Key= Data The dollar kept pressure on the yen today, driving it to a new 3-yea= r low of 133.37 in Tokyo before falling back to support around 132.20 in Eu= ropean trade. Again, the Japanese were main sellers of yen after Monday's c= orrective buying gave way to a 2% sell-off over the past two trading days. = The euro also rose by the same amount, but has failed to reach new highs si= nce its 2-year peak of 119.71 last week. Meanwhile, USD was relatively unch= anged in London trade against the euro and sterling but added to overnight = gains against the Swiss franc. The market continued to react to overnight = comments by Japanese monetary officials that showed their acceptance of a w= eaker yen. Japan's top financial diplomat, Kuroda, said on Wednesday that t= he country's FX policy remained unchanged despite the yen's rapid 10% decli= ne over the past 2 months. Economics Minister Takenaka also said late last = night that following his meetings with US economic officials he saw the US = economy rebounding more quickly than previously thought and that weakness i= n JPY was not "far off economic fundamentals" for the struggling Japanese e= conomy. Although Takenaka later admitted that he did not discuss FX levels = with US officials, his comments carried with it the implicit impression tha= t the US was fine with a weaker yen Japanese officials are now likely to r= emain quiet ahead of PM Koizumi's 7-day tour around southeast Asia which be= gins today. Although US monetary officials have expressed a desire to let m= arkets determine FX rates, countries such as China and Korea have voiced co= ncern about Japan exporting their deflation to the rest of the area. In the= absence of further encouragement and the fact that JPY is technically over= sold a period of consolidation would not be unusual. But any correction in = USD/JPY would likely hold around 130-132 dealers say. CHF fell on the bac= k of a further rise in Swiss unemployment to 2.4% in December from 2.1% in = November. This showed the labor market coming under increased pressure as e= conomic weakness permeates the economy. But markets paid more attention to = Swiss National Bank Vice-Chairman Gehrig who reportedly said in an intervie= w that the SNB's next move could be either up or down. This surprise commen= t caught markets off guard and given that the economy should show flat grow= th in H2 2002, as well as the central bank's dissatisfaction with the curre= nt strong CHF exchange rate, traders sold the franc versus the euro and dol= lar. USD/CHF rose to a new high of 1.6591 in European trade after breaking= key resistance at 1.6575/80. The dollar's renewed strength since touching = uptrend support at 1.6350 last week has been bullish for the pair and next = resistance is seen at 1.6650 and 1.6680. Support is seen at 1.6510 and 1.64= 75. EUR/CHF also rose to a high of 1.48. Meanwhile, the dollar hovered in = a tight range against the euro and sterling as both EUR/USD and GBP/USD sho= wed little decisive price action. EUR/USD tested key support at 89.10, whi= ch marks the 50% Fibonacci retracement of the move from 82.25 to 95.96. Ove= rnight, the pair briefly tested resistance at 89.50, but was rejected. Now,= failure to maintain above 89.10/20 would probably call for a test lower to= 87.60/40. Looking at the hourly chart, EUR/USD has traded neatly within th= e 38.2% and 61.8% Fibonacci retracement levels of the move from 82.25 to 95= .96. These levels are 90.72 and 87.64 respectively and were tested on Decem= ber 17, 25 and most recently on January 2 when the single currency reached = a high of 90.63. GBP/USD also looks weak as resistance at 1.4440 has prove= d hard to break. Cable's position has worsened since failing to break throu= gh resistance at 1.4547 on January 2. This level marks the 61.8% Fibonacci = retracement of the move from 1.51 to 1.3680. Cable is now trading at a day'= s low of 1.4388, which also marks the 50% retracement of the same move. A c= lose below this level would target 1.4360, followed by 1.4340, 1.4300 and 1= .4250. Resistance is eyed at 1.4440, 1.4480, 1.450 and 1.4550. In the UK, = attention continues to center around that debate and the dilemma now faced = by the Bank of England over whether or not to ease rates for the struggling= manufacturing sector in light of robust consumer spending. The BoE's monet= ary policy committee meeting on Thursday is expected to leave rates unchang= ed at 4.0%. However, unexpectedly strong consumer spending released last we= ek prompted BoE Governor George to express some concern, saying that if dem= and did not abate the central bank would raise rates as soon as the economy= recovered. EUR/GBP also fell to a day's low of 61.88. Support at 61.70 s= hould maintain, but the high of 62.80 reached on January 2 in the wake of e= urophoria and renewed EMU debate could be seen as a selling opportunity say= dealers who see strength in euro abating. Meanwhile, the single currency= 's prospects were also hurt by rising fears in Argentina over the possible = collapse of the new economic plan, given that the euro is the most exposed = of the major western currencies. In addition, the Eurozone business climate= indicator fell to -1.23 in December from -1.20 in November, for a 10th con= secutive month, and to the lowest since July 96. Also worrisome was the fa= ct that E-12 Q3 labor costs rose 3.3%, more than the previous 2.7% in Q3 an= d above expectations of 2.6%. =09[IMAGE] Audio Mkt. Analysis Officials Dr= ive Down JPY, CHF Articles & Ideas What's Next For the Euro? A Loo= k Back at 2001, Forex Themes for 2002 Articles & Ideas Forex Glossary= 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 f= rom this or any other Forexnews.com newsletters, please click here . =09
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