FX markets remain range bound, after the weak...>

YEN: FX markets remain range bound, after the weak Japanese GDP print did little

to stoke price action. Looking at the release, Japan's economic growth in Q417

slowed from Q3, but MNI understands that BoJ officials believe that the modest

economic expansion will continue from Q118 onward. Q4's slower GDP growth came

as no surprise to the officials, who had said the high economic growth in Q3

would not be sustainable. The officials think that the economy will remain

supported by balanced domestic & overseas demand, given solid plans by Japanese

firms to invest in equipment aimed at easing the drag from labour shortages as

well as the recovery in both industrialised and emerging economies. The

officials don't expect that volatile global financial markets will have a

serious dampening effect on overseas demand and Japanese exports. As result the

BoJ officials don't see the need to change the central bank's latest assessment

that "private consumption is expected to follow a moderate increasing trend as

the employment and income situations continue to improve." USDJPY last trades at

107.70, 15 pips lower in Asia, with support sitting at 107.31 (the daily low

from Sep 8), and initial resistance just above the figure at 108.03.