PREDICTION APRIL 28, 2006

USD/JPY volatile, hits day's low of 114.08, then jumps to day's high of 114.50, in what seemed to be mixture of position adjustments, short-term play, say Tokyo traders. EUR/USD also already down to 1.2537 after spike to 1.2558 (highest since 1.2585 marked on Sept. 5). Volatility likely due partly to long Japan holidays next week, they say. But traders remain bearish on USD; "whatever materials come out, the market is inclined to react by selling the dollar," says Mizuho Corporate Bank trader Shuichi Kanehira, referring to USD/JPY's fall after BOJ report which was well within expectations