After a relatively quiet start to the U.S.......>

YEN: After a relatively quiet start to the U.S. session on Thursday, momentum

picked up on a break through session lows for USD/JPY, prompted by a poor

showing from U.S. equities & a strong day for Treasuries. Lower Tsys yields

allowed the JPY to gain, with EUR/JPY printing the lowest levels observed since

September (sub Y129.00), as Italian & Spanish fiscal worries added additional

pressure to the cross. USD/JPY last Y112.15, trading 5 pips softer than

Thursday's close. Immediate support at the October 17 low (Y112.02), with

initial resistance at Thursday's high (Y112.73). Bulls target the 50%

retracement level of October's downtrend (Y113.09), a break opens the double-top

resistance area (Y113.45/50). Bears need a close back below Y112.00, before

challenging up trendline support (Y111.78).

- EUR/JPY last Y128.50. The outlook for EUR/JPY turned negative after bulls

struggled to build on gains above 130, with bears targeting the Sep 10 low

(Y127.87). Bulls need to recover Y130.00.

- Focus today falls on 10-25+ Year BOJ Rinban operations, Japanese CPI & a

speech from BOJ Gov. Kuroda.