[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  January 28, 7:00 PM: EUR/$..0.8609 $/JPY..133.53 GBP/$..1.4091 $/CHF..1.7077  Japanese Forex Trading Preview  by Darko Pavlovic  At 6:00 PM December Unemployment rate 5.6% vs. 5.5% in November. At 6:50:00 PM Japan December Ind.Prod. (exp 2%, prev -1.7%)  Japan December unemployment rate rose to a record high of 5.6% from 5.5% in November. The number of unemployed rose to 3.37 million. Japan Dec wage earners' spending fell 4.4% y/y and jobs to applicant ratio is down 0.51 from 0.53 in Nov. USD/JPY did not react to news hovering around 133.55 yen. The greenback is up vs. the yen after falling to a low of 133.20 overnight. Speculation of ratings downgrades is also likely to pressure the yen in the immediate future. December Preliminary Ind. output rose 2.1% from November. Oct-Dec Prel. Output fell 2.3% from the previous quarter, 4th straight qtr of decline. Japan Jan manuf. output seen up 1.4% m/m amd Feb manuf. output forecasted to raise 0.6% m/m. Japan Meti repeated ind output in declining trend. Japan's Lower House budget committee passed a Y2.5 trillion deflation-fighting supplementary budget Monday.The second extra budget for this fiscal is aimed to help finance a Y4.1 trillion spending package and support the economy in the outcome of the Sept. 11 attacks. The budget will also help PM Koizumi to speed up much-needed structural reforms. Former U.S. Treasury Secretary Lawrence Summers, now President of Harvard University told PM Koizumi that he fully supports implementation of structural reforms. Summers spoke with Koizumi about the current situations of the forex markets the world economy.Upside capped at 134.50, 134.90 and 135.30. Support stands at 133.50, 132.80 and 132.40.   The dollar held the European currencies near their 6-month lows, but gave up ground to the yen as a result of the gains in its cross-pairs. As an indication of the dollar's strength, the US Dollar Index soared to 120.35, just shy of its 15-year high of 121, but later eased down to around the 120.0-level.    EUR/USD climbed to 86.10 after plunging to a fresh 6-month low of 85.73 in spite of a better-than-expected rise in the German Ifo business climate indicator that rose to 86.3 in January from an extrapolated reading of 85.8 in December. In response to the third monthly rise in the index, Ifo Chief Nerb commented that German appeared to be in the early stages of a recovery, and urged the European Central Bank to continue to lower interest rates to ensure a recovery. The single currency was likely pressured as well by the rise in M3 to 8% in December, and the gain in the M3 three-month moving average to 7.8% in December from the previous 7.4% and well above the inflation target of 4.5%. Nonetheless, the ECB has tended to brush aside the surges in M3 by explaining them as irregularity, though it does create concern whether upward price pressures will deter the central bank from easing monetary policy. Resistance is viewed at 86.60, 87.0 and 87.50. Support is seen at 85.55-- the 71.8% Fibonacci retracement of the move from 82.25 to 95.95, backed by 85.0 and 84.50.   Economists forecasted that tomorrow's release of the Conference Board Consumer Confidence index will rise to 96.9 in January from the previous 93.7, boosted by an increase in consumer expectations. Should the confidence survey surprise even more on the upside, the dollar will likely reap gains from the data that foretells a promising economic outlook.    Other major US data due for release this week include durable goods, real GDP, the FOMC rate decision, jobless claims, employment cost index, personal income and consumption, Chicago Purchasing Managers survey, labor market report, University of Michigan confidence survey, and ISM Purchasing Managers Index.   In addition to President Bush's State of the Union address, tomorrow marks the first day of the Federal Reserve's monetary policy meeting. The majority of analysts have concluded that the Fed is unlikely to cut interest rates when the FOMC unveils its decision Wednesday afternoon, especially after Greenspan adjusted his remarks about the economy with a more upbeat tone.  Key Eurozone indicators consist of Italian foreign trade, French INSEE industry survey, Italian PPI, Euroarea retail sales, German CPI, French unemployment, French current account balance, Euroarea manufacturing PMI, Euroarea HICP, balance of payments, German PMI, French PMI, French INSEE household survey, Italian PMI, Italian CPI and Spanish unemployment. Economic data from the UK comprise the Gfk consumer confidence survey and the purchasing managers survey for manufacturing. Highlights from Japan comprise the labor force survey, the household survey of expenditures, industrial production, Shoko Chukin small firm survey and employment survey.    	[IMAGE] Audio Mkt. Analysis USD Retreats Ahead of Data Flood       Articles & Ideas  How Will the Dollar Fare Amid the Data Barrage?   ECB: One More Cut       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
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