[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 30, 7:00 PM: EUR/$..0.8611 $/JPY..132.87 GBP/$..1.4143 $/CHF..1.7089  Japanese Forex Trading Preview by Darko Pavlovic  No key data.   The dollar is trading around 132.80 yen, well above one week lows of 132.35 due to strength derived from the upbeat US GDP figure rather than weakness in the Japanese currency. The Japanese currency was supported just before the FOMC decision on news that General Motors' Chief Economist Mustafa Mohatarem had requested the US Treasury tell Japan to stop intervening in currency markets, since the weaker yen is hurting the manufacturing industry and jobs. Overnight the yen had risen to a 1-week high of 132.35 against the dollar after a report in the Wall Street Journal stated that General Motors had complained to Treasury Secretary O'Neill about the weak yen because of its negative impact on the firm's bottom line. GM is hoping that President Bush will discuss the issue when he meets with Prime Minister Koizumi next month, because if the US Treasury does not signal clearly its opposition to Japan's deliberate efforts to weaken the yen, then GM executives fear that the the Japanese will continue their FX manipulations. MoF's Mizoguchi who affirmed Hayami's comment that a weaker currency will not solve Japan's problems also supported the yen. After he sacked Makiko Tanaka as his foreign minister PM Koizumi is trying to appoint Sadako Ogata to that position. The changeover came during busy Japan's diplomatic schedule. The foreign ministers of Japan and Russia are due to meet on Saturday. Koizumi is hopeful Ogata will accept the position.The diffusion index of sales for smaller firms hit -25.9 in January, 2.2 pts better than in December, rising for the first time in six months. Analysts doubtful that improvements in index mean the deteriorating trend have come to a halt. The BoJ policy board member Nakahara reiterated the need for the Central Bank to consider foreign bond buying as a way of injecting liquidity into the financial markets. Nakahara said the BOJ could possibly buy foreign bonds totaling Y200 billion a month.Upside capped at 133.70, 134.0 and 134.30. Support holds at 132.35, 132.0 and 131.75.    The dollar and US stocks rallied today on a better-than-anticipated positive GDP reading, drawing renewed encouragement as well from the Federal Reserve's decision to leave interest rates unchanged in a highly expected move.US Q4 GDP rose 0.2% q/q from the previous  1.3%, startling markets which had been expecting a second straight quarterly drop to  1.0% that would have officially designated the US economy as being in a recession. The Federal Reserve decided today to leave interest rates unchanged at 1.75% but maintained its easing bias. The FOMC acknowledged the presence of signs that weakness in demand is abating and economic activity is beginning to firm, thereby leading to a more promising outlook for economic recovery. Tomorrow's release of Chicago PMI is forecasted to rise to 45.5 in January from the previous 41.4, mirroring the improvement seen in the ISM (formerly NAPM) survey. The pickup in the manufacturing sector is attributable to increased spending on durables and other goods, and therefore, US Personal consumption is expected to rise to  0.1% in December from the previous  0.7%. Personal income is also assumed to post a gain of 0.3% in December from the previous  0.1%, even though the Employment cost index is projected to hold steady at 1.0% in Q4.  EUR/USD fell around half-a-cent to a session low of 86.01 in response to the surprisingly positive US GDP data, pressured also by comments from the Bundesbank's Meister declaring that additional ECB rate cuts are pointless if the economy matches the rise in sentiment. He commented that the German economy is now passing its low point and therefore growth will pickup in the latter half of the year. The euro was also hurt by the European Commission's recommendation that Germany and Portugal be warned about their rising budget deficits, which are nearing the official limit of 3% of GDP. Overnight, the single currency was lifted by French business confidence that overshot expectations to rise for the second time to 92 in January from the previous 90. Support is viewed at 85.55-- the 71.8% Fibonacci retracement of the move from 82.25 to 95.95, and 85.0. Resistance is seen at 86.70, 87.0 and 87.50.    	[IMAGE] Audio Mkt. Analysis Positive GDP, Positive Fed Help Dollar       Articles & Ideas  Fed Moves On, Dollar Moves Up   How Will the Dollar Fare Amid the Data Barrage?       Articles & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Library      [IMAGE] 	
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