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The Bank of Japan said the economy should continue picking up for the next few months but warned that it is still weak, suggesting that it may slow down after the effects of stimulus measures run out when the new fiscal year starts in April.

Reiterating commnets from its latest monetary policy statement the BOJ said, the BOJ said, “Japan’s economy is picking up mainly due to various policy measures taken at home and abroad, although the momentum of self-sustaining recovery in domestic private demand remains weak.”

“Japan’s economic conditions are likely to continue improving, although the pace of involvement is likely to remain moderate for the time being.” Business investment and consumer spending should be propped up by the current temporary tax breaks and monetary easing through the end of fiscal 2009.

Usd/Jpy, Eur/Jpy, and Gbp/Jpy are all currently at session lows trading at 88.69, 132.38, and 146.85 resspectively.

Perhaps you saw this morning’s release of Euroland’s economic data. German GDP jumped by 0.7% in the third quarter. Adding to GDP was an inventory build and capital investment; subtracting from GDP was consumption and trade. Not so stellar, but somewhat reassuring nonetheless, was an increase in new industrial orders…

The USD is trading mixed to higher supported by a dip in risk appetite sparked by report of S & P’s concern over capital shortfalls at some large global banking firms and worries about German banks, FAZ reports that Germany’s West LB bank may be allowed to become insolvent, news…

Japanese markets went through the normal routine of weighing heavily on the short side of sentiment, European markets tried to reverse things, and in the pattern that has been in place for a month, the S&P futures market is charged with rounding up the bulls, and re-directing them, long. The…

A slew of overnight woes concerning the health of banks around the world was limited in its support for the U.S. dollar. One year ago that evidence would have been enough to raise the heartbeat of the bears and send the pre-market futures down by 2%. Today, equity index futures…

Cable has risen from the day’s low of 1.6496. Immediate Resistance is seen at 1.6575, a break above which might see a rise towards 1.6640-60. A strong break above 1.6660 might target 1.6730-50. On the other hand if the immediate Resistance at 1.6575 holds, we might see a downmove towards…

Overall, the market traded flat during the first part of the overnight session, but just ahead of the European open the majors started tumbling lower, extending the downtrend seen during the prior U.S. session. However, at the first support area that the major pairs hit, the market started reversing the…

The pair continues to maintain its downside pressure closing slightly on a rejection candle on Monday and following through lower in today?s trading session. Now trading below the 88.82 level, immediate risk is now seen towards its Monday low at 88.57 with a loss of there allowing the pair to…

With most of its recovery gains on Monday still maintained, immediate risk remains higher with focus on its Nov 16?09 high at 1.5014. A sustained break and hold above there will set the stage for a run towards its YTD high at 1.5062 with an eventual break of that level…

Despite intra-day sharp retreat to 132.02, as long as indicated support at 131.76 (last week?s low) holds, further consolidation would take place and our mild upside bias remains for another rebound to 133.61but break of resistance at 134.01 is needed to confirm low has been formed there and bring further…