[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]    December 26, 8:30 AM: EUR/$..0.8795 $/JPY..130.87 GBP/$..1.4417 $/CHF..1.6840   by Ashraf Laidi  US Trading Preview:  USDJPY Nears 131 Despite Comments  The dollar is once again probing near its recent 38-month high of 131 yen despite comments from Japanese officials drawing calling against rapid declines in their currency. MoF's top diplomat Mizoguchi said:  It is not good for daily market moves to be too large . These comments were also echoed by Takashi Imai, the head of Keidanren, Japan's leading business lobby. Although Mr. Imai expressed cautiousness with the pace of the decline, he described the 130 yen point as a level at which:  both the U.S. and Japan can accept without having to intervene.  But the most abrupt comment on the soaring exchange rate came from Mizoguchi's predecessor Eisuke Sakakibara who said that:  it's realistic to think the (dollar) could go to Y140 or Y150 (next) summer," given Japan's sever economic conditions. The yen first broke the 130 level in early Monday trading in Japan after the BoJ downgraded the nation's economic assessment for the seventh consecutive month.   USD/JPY is looking increasingly toppish at 130.88 followed by 131 and 131.20-25. A break 131.75 faces key pressure at 132. Support escalates to 130.50, backed by 130.20 and 129.75.   On Tuesday, the BoJ published the minutes of last month's meeting in which its voted 8-1 to maintain monetary policy unchanged. The record showed the majority of board members were in agreement that the Bank did not need to buy foreign bonds as a means to shore up liquidity.  But several members did express the need to reconsider the Bank's liquidity provisions including diversifying into the purchase of foreign bonds as a possible measure in the future.   It was last week, when the BoJ announced raising its reserve target at commercial banks to 14 trillion yen from over 6 trillion yen and boosted monthly purchases of Japanese Government Bonds to 800 billion yen from 600 billion yen.  On the data front, Japan's corporate services prices were reported to have fallen 0.1% in the month ending in November and 1.2% on a y/y basis.    In the Wednesday session, the Nikkei posted its 4ths consecutive daily decline, losing 62 pts to close 10192, its lowest level since November 1st.   EUR/USD nears its session lows of 8767, further retreating from the 88.20 cent-high in Asian trading. Initial support stands at 8725, which is the 61.8% Retracement of the move from 9350 to 8350.  A break under 87 cents faces key support at 86.50 cents, which rests in the support line of the downward channel extending from 8950 to 8735.Upside capped at 8820 followed by 8875.   There are no major economic releases due in the US today. NASDAQ futures are up 3 pts, Dow futures are down 27 pts.    	[IMAGE] Audio Mkt. Analysis USDJPY Breaks Above 129       Articles & Ideas  2002: Euro Deja Vu?   USD/JPY: The Return of Dollar Rhetoric?       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
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