[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 24, 7:00 PM: EUR/$..0.8775 $/JPY..134.87 GBP/$..1.4248 $/CHF..1.6737   Japanese Forex Trading Preview by Darko Pavlovic  At 6 PM Japan overall CPI down 1.7% y/y down 0.3% m/m   The yen fell to a new three year low of 134.90 vs. the dollar after Japan Dec. Nationwide Core CPI fell 0.9% from a year earlier, 27th consecutive month of decline. Nationwide core CPI fell 0.8% in 2001 compared with the previous year, falling for the 2nd straight year. Overnight the markets were discouraged by Japanese Finance Minister's comments overnight that his policy was not to intervene in forex markets, but to let them decide exchange rates. Traders interpreted his remark as a signal to unload the yen. Finance Minister Shiokawa said yesterday he does not think the yen's decline has been too rapid. Recall, that the yen has lost 2% in just five preceding days. Shiokawa also added that the government plans to   take action'' if the yen moves considerably. PM Koizumi plans to prepare a comprehensive package of tax reforms designed to combat deflationary pressure by spurring demand for real estate and housing. The Council on Economic and Fiscal Policy will focus on raising the gift tax exemption on monetary gifts from parents to children to finance housing purchases and plans to reduce or eliminate various real estate transaction taxes. A joint task force of government officials and the BoJ has agreed to ensure an ample supply of funds on the market and create demand through structural reform, in order to bring deflation under control. The government forecast that the economy which started shrinking 14 months ago, will probably contract 1% in the fiscal year ending March 31, and will likely have 0% this year. Resistance is eyed at 135.0 and 135.50. Support holds at 134.0, 133.60 and 133.0.   Federal Reserve head Greenspan said that the forces restraining the US economy are diminishing and activity is beginning to firm. Greenspan clarified that in his speech on January 11, he had tried to communicate that the economy was stabilizing while avoiding any talk about an economic snap-back, and thus he regretted not phrasing his speech differently. Although Greenspan felt that the US is "just at this particular point turning" in the US business cycle, he projected that the US is close to zero GDP growth. On its part, the White House also indicated it saw increasing signs of strength in the economy but also clouds. Therefore, the White House estimated "quite modest" GDP growth in Q1, followed by acceleration in growth later.  The euro is trading around 87.74 after falling to from its 1-month low of 87.53, underpinned by European Central Bank Vice-President Noyer's declaration in favor of a strong euro and that the ECB believes the European economy will recover this year. Noyer explained further that the single currency has sufficient room to rise without hurting industry. As for inflation, Noyer reiterated that Eurozone CPI should drop "clearly below 2%" after Jan-Feb and stay there. Resistance is viewed at 88.15, 88.60 and 89.10-- the 50% Fibonacci retracement of the move from 82.25 to 95.96. Support is seen at 87.50-- the 31.8% Fibonacci retracement of the move from 82.25 to 95.96, backed by 87.0 and 86.80.  This week's remaining key US indicator is existing home sales. From the Eurozone, major data due for release consist of German PPI, Italian CPI, Italian retail sales and Spanish PPI. The release of consumer prices in Japan is expected to reflect the prolonged deflationary spiral that is adding to their economic woes.     	[IMAGE] Audio Mkt. Analysis Markets Rally as Greenspan Clarifies Outlook        Articles & Ideas  NAM & the Strong Dollar: Phase II   Philly Fed-Supported Optimism       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE]  	
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