FOREX 08 JAN 2007

WOW... pair Euro/Yen moving down so quick after touch new high 158.04 then drop down to 153.75 for today about 429 point down. Downside pressure still increasing, with prices now at the 153.77 low of 15 Dec. Bearish intraday studies allow for still deeper EUR reactions, with 153.17 to follow. Resistance into limited gains remains at the 154.50 intraday high, but a test andbreak back to 155.00 is not looked for, as profit-taking increases.

08 Jan 07: 01:22(SGA) - FX NOW! USD/JPY, EUR/JPY Flows : JPY remains firm, some focus on CNY after PBoC Zhou
USD/JPY and EUR/JPY at day lows of 118.30, 153.80, with some focus on earlier PBoC Governor Zhou Xiaochuan comments that China will increase CNY flexibility should trade surprlus continue to rise, helping to weigh on USD/JPY, EUR/JPY as well, as funds, still long, continue to unwind carry trades since end of last week. USD/CNY mid rate higher at 7.8135 from Friday close of 7.8047 on Friday. Market players will be monitoring CNY trading after PBoC Zhou comments, and not surprise to see further CNY rise. USD/JPY hit 2-wk lows of 117.98 on Friday, some bids at 117.90-00 from Japanese buying orders; while EUR/JPY at 3-week lows of 153.80, lowest level since Dec 15 153.74. Stoploss blw 153.70.WL