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Date: Tue, 12 Mar 2002 16:10:14 -0800 (PST)
From: info@forexnews.com
To: sara.shackleton@enron.com
Subject: Japanese Preview
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[IMAGE] Forums Discuss these points in the Forums:  Forexnews Forum       T=
echnicals 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] =09 [IMAGE]  Japanese Forex Trading Pre=
view  March 12, 7:00 PM: EUR/$..0.8746 $/JPY..129.03 GBP/$..1.4139 $/CHF..1=
.6797  Japanese Forex Trading Preview by Darko Pavlovic   At 6:50 PM Japan =
Feb net foreign bond selling (exp n/f, prev n/a)  The dollar recovered agai=
nst the yen to 129.30, as Japanese currency was hurt by 2.6% fall in Nikkei=
. Markets wary of possible forex intervention from Japanese government afte=
r a series of verbal warnings that rapid yen's strength is not in line with=
 economic fundamentals. The Japanese currency was little impacted by news t=
hat the Government Pension Investment Fund would increase its weighting of =
foreign bonds to 3 trillion yen or 8% from 6%, as it also invests another 1=
1 trillion yen in domestic stocks over the next seven years. The FSA is con=
tinuing with its special inspections of large banks in fiscal 2002 in an ef=
fort to force them to dispose of more bad loans. Last November, the agency =
began inquiring firms whose stock prices or credit ratings had fallen and w=
hich had more than 10 billion yen in outstanding loans. The Nippon Research=
 Institute announced that Japanese consumers are becoming more optimistic a=
bout their home finances in the coming year. February's consumer sentiment =
index rose 3 point higher from December to 155. Japan Feb net foreign bond =
selling was 637.1 bln yen (Jan Y3.0712 trln selling). Foreigners' Feb net J=
apan bond selling 1.0420 trrln yen (Jan Y1.2368 trln buying). Foreigners Fe=
b net Japan stock selling 142.2 bln yen (Jan Y234.2 bln buying). Resistance=
 is eyed at 129.20, followed by 129.65, 130.65 and 131.65 which marks the 3=
8.25, 50%, and 61.8% retracements of the move from 134.95 to 126.32. Suppor=
t holds at 128.0, 127.60, and 127.0. Subsequent support is seen at the 200-=
day moving average of 125.16.  EUR/USD is hovering around 87.45 after Euroz=
one Q4 GDP data showed the first contraction since 1993 as it fell to -0.2%=
 q/q from the previous 0.1%, or to 0.6% y/y from the previous 1.4%. Analyst=
s projected that Eurozone Q4 GDP would decline to -0.8% in a sharp contrast=
 to a US growth rate of 1.4% in the same period that highlights stronger ec=
onomic vitality in the US this year. Upside capped at 87.60, 88.10--the 50%=
 Fibonacci retracement of the move between the 90.63 high to the 85.63 low,=
 88.50-- the 200-day moving average, and 88.70-- the 61.8% retracement of t=
he aforementioned move. Support is seen at 87.0, 86.70 and 86.0-- the suppo=
rt point lying on trend line extending from the 83.50 low through the 85.63=
 low.   Markets await tomorrow's release of US retail sales, which are expe=
cted to rise to 0.9% in February from the previous -0.2%, or to 3.6% y/y fr=
om the previous 2.8%, boosted by surprisingly robust light vehicle sales.  =
This week's US economic highlight include retail sales, jobless claims, bus=
iness inventories, import/export prices, current account balance, PPI, indu=
strial production, and the University of Michigan consumer confidence surve=
y. Key Eurozone indicators consist of Spanish CPI, ECB monthly bulletin, Fr=
ench employment, French industrial production, Italian industrial productio=
n, German retail sales, French trade balance, and Italian CPI. Major data f=
rom Japan comprise the balance of payments and industrial production.    =
=09[IMAGE] Audio Mkt. Analysis USD/JPY Regains 129       Articles & Ideas  =
Yen's March Madness   Will Dollar be Fuelled against the Euro?       Articl=
es & Ideas Forex Glossary   Economic Indicators   Forex Guides   Link Libra=
ry      [IMAGE] =09
=09=09[IMAGE][IMAGE] [IMAGE][IMAGE]=09
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