[IMAGE] Forums Discuss these points in the Forums:  Forexnews Forum       Technicals 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] 	 [IMAGE]  Japanese Forex Trading Preview  March 6, 7:00 PM: EUR/$..0.8766 $/JPY..130.77 GBP/$..1.4230 $/CHF..1.6817  Japanese Forex Trading Preview by Darko Pavlovic  At 6:50 PM Japan Feb foreign reserves (exp n/f prev n/a)  The yen is trading at a 2 month high vs. the dollar, around 130.60 boosted by repatriation flows ahead of March 31, an upgrade from Merrill Lynch and a rise in Nikkei. If the yen breaks below 130-which are the lows from January 7th, it could strengthen vs. the dollar to 129.30-129. Moody's rating agency announced that there was a high probability that a new review would prompt a two-notch ratings downgrade in Japan's sovereign debt. Traders also wait for the release of Q4 GDP data from Japan on Friday. The ruling LDP party is advocating the government to compile new stimulus measures, as a way to help the economic recovery. After the fall in PM Koizumi's popularity it is more obvious that the ruling coalition is trying to impose its decisions on they way how the government should deal with economic problems. Economic minister Tanaka and BoJ Governor Hayami do not agree if inflation target should be set. Tanaka is in favor of inflation targeting while Hayami thinks that its impact would be very limited on monetary policy. The House of Representatives passed the 81.23 trillion yen budget for fiscal 2002, which begins April 1. The total amount of the budget fell 1.7% from fiscal 2001 and is the smallest since that for fiscal 1998. The budget was submitted to the Diet on Jan. 25.Ten major think tanks downgraded their GDP growth rate for the October-December 2001 quarter. The contraction in GDP forecasted by the institutions averages 1.3% below the previous quarter, which converts into an annualized contraction rate of 5.2% and would mark the third straight quarter-on-quarter decline. The revisions were due to fall in corporate capital spending data for the same quarter. Japan foreign reserves rose $403.486 bln at end February up $2.609 bln from a month earlier. A breach of 130.50 should trigger the testing of the trend support line, which extends from 115.75 (Sep 20) thru 119.71 (Nov 12), at the 129.75 level. Resistance is seen at 132.50, 133.50 and 133.70.  EUR/USD is trading around 87.65 waiting for tomorrow's rate announcement from the European Central Bank, even though analysts do not expect a rate move. Having broken the near-term resistance of 87.55, EUR/USD will eye the more challenging target of 88.10 cents, which is the 50% retracement of the slide from the year's high of 90.63 to the year's low of 85.63. From there, the euro faces its next resistance at 88.50. Support is viewed at 87.0, backed by 86.65 and 86.30.   The majority of economists believe that the BoE will keep rates steady at 4.0%, particularly after the central bank governor Eddie George made comments with the intent of dampening market hopes for interest rate hikes later in the year. Sterling tumbled against the euro, though, on reports of an impending deal between the UK's Imperial Tobacco and Germany's Reemtsma. Cable is trading around $1.4230. Support holds at 1.420, 1.4170 and 1.4130. Upside capped at 1.4256, 1.4280 and 1.430.  Tomorrow's release of US Q4 productivity is forecasted to rise to 4.5% from the previous quarter's 3.5% due to an upward revision in GDP. This is a dollar supportive piece of data, though markets will still be waiting for Friday's labor market report for a reading on the US economy.  Major data due from the US this week consist of jobless claims, productivity, consumer credit, and the labor market report. Key Eurozone indicators include the ECB rate decision, Italian GDP and Dutch CPI. The main data releases from the UK are housing starts and the Bank of England's rate decision. Highlights from Japan comprise the MoF corporate survey, trade balance, indices of business conditions, GDP, money supply and wholesale prices.    	[IMAGE] Audio Mkt. Analysis USD/JPY Hits 2-month Low       Articles & Ideas  Will Dollar be Fuelled against the Euro?   Euro: The Lonely Tender       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
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