NEWS - 19 JANUARY 2007 (LOCAL TIME)

FX NOW! USD/JPY, EUR/JPY Flows - Govt Shiozaki : China Space Missile test a concern

Some focus on news of China Missile Test, which could weigh on JPY - possibly some geopolitical tensions, given recent tensions over North Korea. Chief Government Spokesman Yasuhisa Shiozaki says China space missile test is a concern, heard about the test from US. Adds does not consider the test a military threat - Bloomberg. On FX, market sentiment is bearish JPY after BoJ, with funds all looking to buy on dips. EUR/JPY hit day highs of 157.60 on Japanese trust banks buying, while EUR/USD stoploss hit above 1.2975-80 to 1.2987, though offers at 1.30 handle, more stoploss on break of 1.30, could break on EUR/JPY bids
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FX NOW! USD/JPY, EUR/JPY Flows - JPY slips as MoF Omi silent on FX; Trust bks buying EUR/JPY

JPY falls as MoF Koji Omi declines comments on specific currency levels, despite the selloff in JPY to multi-year lows post BoJ. Japan MoF okays weaker JPY post BoJ? Market players now seen pricing in 120-125 USD/JPY range. MoF Koji Omi says currencies should reflect economic fundamentals and declines to comment on specific FX levels. EUR/JPY hit day highs of 157.60 from 157.40-45, talks of Japanese trust banks, Tokyo buying good amount - could be related to toushin, overseas investment trust funds. USD/JPY hit highs of 121.40 from 121.30, stops 121.60.

news source : aonda.com