USD/JPY has added a few pips after.......>

DOLLAR-YEN: USD/JPY has added a few pips after White House adviser Kudlow noted

that the U.S. and China are getting closer to a trade deal, while Fox

correspondent Lawrence reported that U.S. and Chinese trade teams will hold a

primary level phone call on Friday to try and finalise the pact (USDA Under-Sec

McKinney disclosed it earlier in an interview). Little to no reaction was seen

to a larger than exp. slowdown in Japanese GDP growth.

- USD/JPY last seen at Y108.46, 5 pips higher on the day. The rate broke under

the floor of a channel yesterday, the level now provides the initial layer of

resistance at Y108.61, ahead of the 200-DMA at Y109.01. Meanwhile, bears look

for a dip below the 50-DMA at Y108.21, followed by an attack at the low of Nov

11 at Y107.89.

- To recap, the rate edged lower from the off yesterday, as weak Chinese data

inspired risk-off flows. The sell-off accelerated into the WMR fix as the

greenback suffered from lower U.S. Tsy yields.

- Final Japanese industrial output hits today.