Thursday's +ve Wall St. session meant....>

DOLLAR-YEN: Thursday's +ve Wall St. session meant that USD/JPY wasn't as

volatile as some of the other major USD pairs, finishing marginally softer on

the day. A +ve start for Japanese stocks on Fri, alongside touted USD/JPY buying

from a Japanese mega bank saw the rate hit a high of Y112.85, last Y112.76.

- The BoJ raised the size of its 1-3 & 3-5 Year Rinban ops by Y50bn apiece,

after trimming the amount of ops covering the buckets in Nov to 4, prev. 5. If

these rates are applied through the remainder of the month the BoJ will buy

Y1.4tn worth of 1-3 Year paper & Y1.6tn worth of 3-5 Year paper. This compares

to Y1.5tn & 1.75tn worth of the respective buckets at the prior sizes over 5

purchases, pointing to a net reduction in monthly purchases if the current

purchase sizes hold through Nov. 5-10 Year purchase sizes were left unchanged.

- Despite losing their grip on the Y113 level bulls will take comfort in the

hold above the 21-DMA at Y112.56. A recovery of the Y113 level is now needed to

shift the focus back to Y114.00. On the downside, a close below the 21-DMA would

return the outlook to neutral & target broken trendline

resistance-turned-support at Y112.20.