[محمد السويد]

[12:28 January 22] London: USD/JPY fell to a low of 106.23 after stops were
triggered on a break of 106.50. A EUR/USD rally to 1.2750 was partly attributed
to the dollar move lower.
The European Central Bank said in its monthly report that interest rates are
appropriate. They also stressed the need for stability with regards to exchange
rates. Traders are saying that the ECB appear to be unwilling to take any
decisive action to halt the EUR rise. The currency also appears to becoming less
sensitive to verbal intervention.
EUR/JPY rallied to a high of 135.60 and looks poised for further gains. Some
traders are looking for a test of 136.00 where offers are reported.
Japanese MOF official, Watanabe, said Europe and Japan share the same level of
concern on Weak dollar. He added that Japan"s Finance Minister, Sadakazu
Tanigaki, will not be calling on the U.S. to fix deficits.
In the near term, Japanese bids at 106.00 - 106.20 are likely to provide
support. Hourly resistance is seen at 106.85. --Charles.Sultan@thomson.com