[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  February 5, 7:00 PM: EUR/$..0.8677 $/JPY..133.79 GBP/$..14150 $/CHF..1.6973  Japanese Forex Trading Preview  by Darko Pavlovic  No key data.   The yen had its biggest fall in four months vs. the dollar of 134.29 after Nikkei fell to 18 years low and S?downgraded the ratings for seven large Japanese banks. Another rating agency Moody's was reviewing seven major life insurance companies for possible downgrades. The Japanese currency remained beset by pessimism after opinion polls showed that support for Prime Minister Koizumi was waning, and thus may hinder the implementation of critical structural reforms. The yen fell 1.5% to 134.29 from 132.35 yen a 1 1/3 slide. The most current poll showed that only 49% of the public supports Koizumi, down from 72% last month. As the U.S. President Bush's visit to Japan approaches in mid-month it is likely that Bush would give additional support for the structural reform initiative led by PM Koizumi. But some analysts believe there is a shift in a US stance from bad loans cleanup to economic growth. Treasury Secretary Paul O'Neill who visited Japan last month said to his counterpart Shiokawa that the U.S. wants to see Japan return to a growth. The FSA submitted to the ruling LDP a report stating that the banks' disposals of bad loans should be completed within two to three years, as planned. The government plans to clear about 12 trillion yen worth of loans out of the 20 trillion yen in bad debts held by large banks by the end of September 2002. New bad loans created since October 2000 should be disposed of by September 2003.In yesterday's trading December index of leading economic indicators stood at 30.0 below 50 mark for the seventh straight month, suggesting the economy continues to suffer from declining consumer spending and capital investment while industrial output remains weak. As the BoJ starts its two day meeting this Thursday and Friday there are some market rumors that the central bank could adopt a positive inflation target. USD/JPY resistance is eyed at 134.0, 134.40 and 134.80. Support is seen at 132.0, 131.50 and 131.25.  EUR/USD is trading around 86.80, falling from a one week highs of 87.30 in spite of better-than-expected showing in the Eurozone Services index that broke above the key 50-level to 51.0 in January from the previous 49.2, thus denoting an expansion in the sector. The EU business climate indicator also improved to -1.03 from -1.21, marking its strongest reading since last September. Bank of France Governor Trichet remarked later that French growth would be better in January than in December 2001, corroborating the optimism suggested by the indicators.The euro was hurt after  Bild newspaper  announced that German January unadjusted unemployment rose by 326,000 to 4.29 mln, thereby lifting the unemployment rate to 10.4% in January from 9.6% in December. Support holds at 86.35, 86.0 and 85.55-- the 71.8% Fibonacci retracement of the move from 82.25 to 95.95. Resistance is viewed at 87.50, 88.0 and 88.30.   Tomorrow morning's release of US Q4 productivity is forecasted to surge to 2.9% from the previous 1.5%, as a result of a reduction in hours worked. Meanwhile, unit labour costs are seen to fall to its lowest level since Q4 '99 to 0.7% in Q4 '01 from the previous 2.3%. Recall that strong US productivity has been attributed as the main reason behind the dollar's sustained strength despite the US economic downturn and the current account deficit. Thus markets will be awaiting the productivity data to determine whether the dollar's strength is justified.  This week's other key US indicators include jobless claims, consumer credit and wholesale trade. From the Eurozone, major economic releases consist of German unemployment, ECB rate decision, German manufacturing orders, German industrial production and Dutch CPI. UK indicators comprise the NTC/FRES Report on Jobs, housing starts, industrial production and the Bank of England's rate decision. Highlights from Japan are the ESRI Tokyo consumer sentiment, money supply, wholesale prices and machinery orders. Over the weekend, currency traders will be carefully monitoring any developments at the G7 meeting in Toronto for any mention of the weak yen or strong dollar policies.    	[IMAGE] Audio Mkt. Analysis Yen Crushed Amid Nikkei Slide       Articles & Ideas  Dollar Does Davos In New York   USD/JPY: ONeill, Koizumi and January Effect       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
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