[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  December 23, 7:00 PM: EUR/$..0.8967 $/JPY..129.52 GBP/$..1.4367 $/CHF..1.6507  Japanese Forex Trading Preview by Jes Black  No Key Data Today  The dollar went into the Christmas holiday season with a bang, ending Friday's US session up nearly 1.5% to against the euro at 88.67 and climbing to a fresh 3-year high 129.66. Supporting the dollar was the third consecutive rise in the University of Michigan Consumer Sentiment survey to 88.8 in the final December reading from the preliminary 85.8. This contrasted with lower than expected data from the Eurozone and the Bank of Japan's seventh straight month of lowering their assessment of the economy. Optimism for the US economy showing signs of recovery was enough to render the downward revision of Q3 GDP to 1.3% a mute point. Confidence in a forthcoming rebound was also enough to offset a 0.7% fall in consumer spending and a 0.1% fall in personal income.  EUR/USD fell to a low of 88.55 on Friday, undermined by a steep selloff in EUR/JPY to a low of 114.50 after failing to maintain gains above 116. Dealers took profit from the euro's 6-week climb against the yen to a fresh 2-year high of 116.61 on Friday. Dealers also noted that the pair had been on a steady decline since hitting a 6-week high of 90.78 on Monday and its failed attempts at maintaining above 90-cents were an ominous sign.  GBP/USD was also dragged lower by the fall in EUR/USD as well as losses in GBP/JPY. Cable hit a 10-day low of 1.4344 as sterling shed most of its 3.5-yen rise to a new 2-year high of 188.26. Nevertheless, the pound reached a 5-week high of .6156 against the euro as broad based weakness in the single currency weighed it down. Aside from euro weakness, sterling was also supported by remarks from Bank of England Governor George who said that there was a serious risk from a one size fits all monetary policy and that the persistent weakness of the euro was creating problems for the British economy. This highlighted the risk of the UK joining the euro given the ECB's reluctance to stimulate the economy despite the global downturn. Support is viewed at 1.4350, 1.430 and 1.4275. Upside capped at 1.4475, 1.4515 and 1.4550. The next key resistance is seen at 1.460- the upper bound of the downward channel between the October 8 high of 1.4829 to the December 17 high of 1.4607, and then 1.4755- the upward limit of the downward channel between the January 12 high of 1.5101 and the October 12 high of 1.4829.  USD/CHF skyrocketed by 2 centimes to a 1-week high of 1.6550 on dollar strength after the Swiss franc had reached a 4-day high of 1.6286. Safe-haven flows were seen boosting CHF as money flowed out of emerging markets following the announcement Argentina's debt crisis. Fears of default inflamed fears about Argentina's fragile economic situation, and prompted considerable purchases of the franc though that effect has since subsided. Resistance is seen at 1.6550, 1.6585 and 1.6650. Support stands at 1.6465, 1.640 and 1.6370. In contrast, the Swiss franc made headway to a 3-week high of 1.4598 against the declining euro.  Today's Asian trading session is likely to be marked by thin liquidity but dealers will remained focused on any comments coming out of Japan after last week's remarks showed little concern for a weaker yen. Japan's Ministry of Finance added fuel to the yen selling following international bureau chief Mizoguchi's reiteration that that the recent sharp decline was merely a correction of its excessive strength this summer. Dealers noted that the welcoming of a weaker yen could put JPY under further pressure in thin holiday trade this week. However, the focus from here will be how Japanese, US and Chinese officials react if USD/JPY passes 130 because of the trade implications of such a weak yen. But so far, traders in New York said it was not yet clear if the market would find the drive to test the psychologically critical 130 level this week after such a sharp run up in USD/JPY last week.  	[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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