[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 11, 7:00 PM: EUR/$..0.8758 $/JPY..128.10 GBP/$..1.4196 $/CHF..1.6792  Japanese Forex Trading Preview by Darko Pavlovic  No key data.   As repatriation continues ahead of March 31, the end of fiscal year in Japan, the yen continues to show resilience vs. the dollar, hovering around 128 levels, despite verbal intervention from officials to step in the forex market to stem the currency's strength and continued dismal economic data. Beside repatriation Japanese currency got support from another rally in the Nikkei-225 Index, which closed at 11919, its highest level in 7 months.  The index is now up 13% on the year thanks to government regulation to boost domestic equities. These measures include encouraging companies to buy back their stocks and enforcing rules against short-selling, whereby brokers cannot short stocks (sell them with the intention of buying them back at a lower price) when the last price move was a down move (downtick). Credit rating agency Moody's made placed a temporary damper on yen sentiment, when it downgraded the insurance strength ratings of 8 Japanese life insurers to a negative outlook. Moody's stated a weakening economy, grim outlook for a quick recovery and uncertain prospects for additional external support as the rationale for its action. Markets will eye announcement from  the government of asset allocation plans from a pension plan which could sign a rise in foreign bond investment.  Japanese banks turned net sellers of Japanese government bonds for the first time in five years in 2001 due to stock market decline and the introduction of fair value accounting standards. Analysts estimate that if the tendency continues long-term interest rates could express upward pressures, putting a further haul on the economy. January core machinery orders fell to15.6% from the previous month on a seasonally adjusted basis, the biggest drop in 15 years due to lower orders from both manufacturers and non-manufacturers. The diffusion index of the Economy Watchers Survey, which measures the opinions of people concerning the present state of the Japanese economy weigh against with three months earlier, rose 1.2 points from January to 33.1.It is possible that  Japanese officials will step up their interventionist rhetoric near the 126 level so as to build a floor at the psychologically and technically important level of 125. Technically, 125.45 is the 50% retracement of the drop from this year's high of 135.15 to the September low of 115.75. 125.10 follows at the-200 day moving average.  Resistance starts at 129.50 followed by major pressure point at 130.65.  EUR/USD is trading around 87.55 after German based IWH Institute today raised Germany's 2002 growth forecast to 0.8% from 0.6%.  The Eurozone Q4 GDP numbers will finally be released tomorrow at 5 AM, expected to show a 0.7% decline from a 0.5% increase in Q3. This would translate into an annual growth of 1.5% for 2001, compared to 1.2% in the US.  At 2 AM, German inflation figures for February are expected to show a 1.9% rise y/y from 2.3% in January. Yet, it's unlikely that the figures will prompt much change in the shrinking range of the EUR/USD. Initial support seen at 87.25 backed by 87.00 and 86.75-70. 86.20-25 is the next major support, which lies on the trend line support line extending from the 83.50 low thru the 85.63 low. Initial upside capped at 87.60 followed by substantial pressure at 88.10--the 50% retracement of the 90.63 high thru the 85.63 low. Next major resistance seen at the 200-day MA of 88.50 followed by 88.70-80 which is presented by (i) the 61.8% retracement of the aforementioned move and (ii) the trendline resistance which extends from the 93.35 high thru the 90.63 high.  Oil prices stabilized after nearing last week's 6-month highs earlier today, following heightened fears of US military attack against Iraq.  A statement from Iraq today saying UN weapon inspectors would not be allowed to return fuelled tensions and fears of a US attack to force compliance. Meanwhile, OPEC said it would extend its supply cuts into June and would explore the possibility of keeping the output curbs in the second half of the year. April Brent crude oil rose as high as $23.64 per barrel, while West Texas Intermediate touched $24.40 per barrel.   This week, markets should expect further good news from the US as they witness the release of the Feb retail sales report on Wednesday and the Feb industrial production figures on Friday. Retail sales are expected to have jumped by 0.9% after a 0.2% decline in January while industrial production is expected to post its first increase since rising 0.2% in September 2000. Another reason to upward revisions to US growth forecasts in the first half of 2002 is last week's signing of the fiscal stimulus in Congress. Both parties finally agreed to launch a $51 billion package, which includes the extension of jobless benefits to an additional 13 weeks (worth $8.5 billion), thereby extending relief to most workers whose 6-month jobless insurance will expire this month after having lost their jobs after the September 11 attacks. The package also includes corporate tax breaks of as much as 30% for companies with large capital budgets. The bill is expected to boost corporate profits and lift GDP growth by about 0.5%.    	[IMAGE] Audio Mkt. Analysis Dollar Drifts in Quiet Trading       Articles & Ideas  Yen's March Madness   Will Dollar be Fuelled against the Euro?       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
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