[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 17, 7:00 PM: EUR/$..0.8812 $/JPY..132.46 GBP/$..1.4356 $/CHF..1.6654  Japanese Forex Trading Preview by Darko Pavlovic  At 11:30:00 PM Japan Nov Ind Prod. final report (exp -1.8%, prev -0.2%)  The yen was hurt vs. the dollar and the euro after Bank of Japan's January report stated that the economy would continue to worsen, unchanged from its previous economic assessment. The yen ceded two-third yen to bottom at a 1-week low of 132.60 against the dollar and EUR/JPY rose to a session high of 116.79yen. On Friday, markets will scrutinize speeches of several government officials that will likely influence the USD/JPY levels at the end of the week. Due to speak are: PM Koizumi, BoJ Governor Hayami, Finance Minister Shiokawa and Economic Minister Takenaka. The yen got support after Vice Minister for International Affairs Kuroda's stated that Japan has no intention to weaken the yen, but rather upholds the view that FX rates should reflect fundamentals. Thus Kuroda explained that it was inevitable for a currency to fall if the economy was weak. Separately, markets are anxious to hear any comments that may emerge from US Treasury Secretary O'Neill's visit to Japan. The Financial Services Agency announced that a record of 46 small banks and credit cooperatives went bankrupt last year due largely to strict inspections A total of nine banks and 37 credit cooperatives accounts for 15% of Japan's total credit cooperatives. PM Koizumi hinted Thursday the government could alter the current taxation base for corporate and individual income taxes as a part of his structural reform initiatives. Koizumi added that reforming the tax system is a key element of his structural reform plans. The Nippon Research Institute said Thursday its consumer sentiment index, an index on prospective living conditions in the coming year, deteriorated further in December to a record high of 158, up 5 points from October. A higher reading indicates bigger concern among consumers about their situation. Resistance is eyed at 132.70, 133.0 and 133.35. Support holds at 131.80, 131.60 and 131.30.   EUR/USD is trading around 88.12 marking the 50% Fibonacci retracement of the move from 82.25 to 95.96 in today's US session.  The single currency fell in the European session to a 3-week low of 87.92 cents after German GDP posted a fall of 0.6% in 2001 vs. the previous year's 3% growth rate. In addition, the single currency was pressured by market speculation that the EU would warn Germany and Portugal about their budget deficits rising towards the 3% of GDP limit, in accordance with the Maastricht Treaty. In particular, Germany is feeling the effect of falling growth and tax revenues along with the need to increase spending to address unemployment. German Finance Minister Eichel estimates the budget will comprise 2.5% of GDP this year, in contrast with research institutes that predict a range between 2.7-3.0%.Support is viewed at 88.0, 87.50 and 87.0. Resistance is seen at 88.50 and 90.0  Tomorrow's US International Trade balance is expected to ease to -29.0 billion in November from the previous -29.4 bln due to a deceleration in both imports and exports as a consequence of the global slowdown. The University of Michigan confidence survey is forecasted to rise to 89.3 in the preliminary January reading from the previous 88.8. Consequently the dollar is likely to find support as long as the data meets or exceeds expectations. Finally, currency markets will be carefully monitoring tomorrow's meeting between representatives of the National Association of Manufacturers and the US Treasury Undersecretary for International Affairs Taylor to discuss the repercussions of the strong dollar policy. Last week NAM Vice President Vargo requested a meeting with the US Treasury to complain that the strong dollar policy is hurting the exports and slowing down the recovery of the US economy. Vargo thinks that the dollar is currently overvalued because of its strength against the major currencies in spite of the US slowdown.     	[IMAGE] Audio Mkt. Analysis USD Steadies Despite Equities Sell-off        Articles & Ideas  Philly Fed-Supported Optimism   EUR/USD: Technical Analysis       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE]  	
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