[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]  JPY Cools on Jawboning, Bewildered USD Awaits Data  March 8, 7:00 AM: EUR/$..0.8783 $/JPY..128.15 GBP/$..1.4253 $/CHF..1.6728  JPY Cools on Jawboning, Bewildered USD Awaits Data by Jes Black  At 8:30:00 AM US Feb Payroll Employment (exp 9k, prev -89k) US Feb Unemployment (exp 5.7%, prev 5.6%) US Feb Avg Hourly Earnings (exp 0.3%, prev 0%) US Feb Avg Work Week (exp 34.2%, prev 34%)  The dollar recovered to back above 128 yen after Thursday's record four-yen decline and rebounded one half cent against the euro from an overnight 6-week low of 88.40. Further gains in the Nikkei today had little effect on the yen and trade was subdued ahead of key US jobs data due at 8:30 AM.   Japanese official, Kuroda, said the Finance Ministry would take action against rapid currency fluctuations. This helped the dollar come off recent lows. However, it lacked urgency as BoJ Governor Hayami said he was not worried about current FX levels. Instead, Hayami gave credit to the recent move as part of the BoJ's monetary policy easing last week. Dealers also suspected the government's top priority is to keep stocks strong ahead of fiscal year-end bookclosings as dealing with a financial crisis would be worse than the effects of a stronger yen.   USD/JPY is now supported at 127.75, which marks the 38.2% retracement of the 115.75-135.15 move provided a solid base for a corrective rally in the pair. However, speculators who had been on the sidelines have poured in to go long the yen. Therefore, USD/JPY could still target 125.28, the 50% retracement of the same move. More importantly, the yen is approaching its 200-day moving average of 125 for the first time since November.  Meanwhile, the government's resolve to boost Japanese assets ahead of March 31 is likely to fend off any negative news that comes its way. Case in point was today's 2% rise in the Nikkei despite Japan's Q4 GDP which fell 1.2% q/q and was the first time in nearly a decade that output had fallen three quarters in a row. The figure attracted little attention and instead, talk of a global recovery has sparked a wave of foreign money coming into Japan as large American banks have announced their repositioning in favor of Japanese shares.  Japanese banks are pinning their hopes on the stock market holding onto recent gains, at least until the end of the fiscal year end on March 31, when they book their massive stockholdings at market value. If players can hold the Nikkei at 12,000, banks could slash latent stock losses by trillions of yen, help improve their capital adequacy ratios and keep them  solvent.    However, this would still not solve their fundamental problems. Therefore, there still remains doubt as to whether the Nikkei can maintain its recent gains after the March 31 fiscal year end and whether the spectacular rise in yen on speculative trading will come undone over the next few weeks. BoJ Governor Hayami alluded to this today when he said he expected the market to be stable through the end of March, but did not say what could happen afterwards.  USD/JPY fell nearly 5% this week alone, while EUR/JPY fell only 3%. This gap has been filled by the 2 cent rise in EUR/USD and supports the notion that rise in the yen is strictly a Japan-driven play rather than a global growth-driven play. The enforcement of anti-short-selling laws in Japan and the rebound in the Nikkei enhances the yen repatriation play.  EUR/USD fell to a day's low of 87.80 as it retreated from an overnight high of 88.40. On Thursday, the market ignored the European Central Bank's decision to keep rates steady at 3.25%. Markets had anticipated the central bank would take no action due to growing signs of Eurozone economic recovery and rising inflationary pressures. But despite the recent rise in EUR/USD, the dollar's weakness is primarily contained to the yen. Nevertheless, the euro is still threatening to take out 88.10 cents, which is the 50% retracement of this year's move 90.63 to 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 pound was also steady against the dollar around 1.4250 after whipsawing between a 1-1/2 week high of 1.4313 against the dollar, and a 2-session low of 1.4184 cents. Resistance is still seen at 1.4300 and the 200-day moving average of 1.4333, followed by 1.4370 and 1.440. Support holds at 1.420, 1.4170 and 1.4130.  Traders will watch today's US labor report for signs that the recession is taking less of a toll on the workers. The labor market is expected to begin a service production recovery while manufacturing payrolls will continue to contract. US employment labor report is expected to show the creation of 5K to 10K in non-farm payrolls, though some private forecasts expect the creation of 100K. The unemployment rate is expected to rise to 5.8% from 5.6%, while average hourly earnings are seen up 0.3% from 0.0%.  	[IMAGE] Audio Mkt. Analysis Yen Soars 3.5% vs USD       Articles & Ideas  Yen's March Madness   Will Dollar be Fuelled against the Euro?       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
		[IMAGE][IMAGE] [IMAGE][IMAGE]	
		  This e-mail is never sent unsolicited. If you wish to unsubscribe from this or any other Forexnews.com newsletters, please click here .   Any opinions expressed by representatives of Forexnews.com or its affiliates as to the commentary, market information, and future direction of prices of specific currencies reflect the views of the individual analyst, and do not necessarily 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 inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of information.