US Dollar, Japanese Yen both strengthen in Asia trade.


Comments by Fiscal and Economic Policy Minister Kaoru Yosano that there's ``hardly any difference between the Bank of Japan and the government's views of the economy”, gave currency traders yet another confirmation that the Bank of Japan is about to shift from its quantitative easing policy. The Japanese Yen was strong from the start of trading as forex traders swept through the perceived support at 116.10 straight through to a low of 115.65. This was just short of the target of 115.50. The support below this is around 114.80, with many eyes on the mid January low of 113.40. The US Dollar fared well against the European currencies. The focus this week will be undoubtedly be on the expected quarter point rise ordered by the European Central Bank ( ECB ) on Thursday. Fx markets will be studying any comments after the meeting to judge just how far the ECB is committed to a firmer stance on interest rates. The Euro while weaker against the US Dollar at 1.1840 is just hanging on to its dignity, but a visit to the late December 2005 low of 1.1780 is only a matter of time. The 2005 low of 1.1640 is seen as a target by many currency traders. The British Pound is likewise weaker but a target of 1.7310 which many traders have in their sights looks to be eminently attainable. Swiss Franc traders having breeched the 1.3200 target will be looking to match the mid November 2005 high of 1.3285.