USD/JPY last seen at Y108.60, almost.....>

DOLLAR-YEN: USD/JPY last seen at Y108.60, almost unch. No reaction so far to a

slight miss in headline CPI accompanied by an in-line core CPI reading. The

readings were for Oct, when Japan implemented its sales tax hike.

- The pair finished little changed Thursday, oscillating on the back of trade

war headlines. It lost ground from the off as U.S. House of Representatives

passed the contentious Hong Kong bill amid talk of U.S. Pres Trump planning to

sign it. However, a BBG report suggesting that Chinese VP Liu is "cautiously

optimistic" about phase-one trade deal put a fresh bid into the pair. Duelling

headlines drove subsequent (range-bound) price action, with USD/JPY finishing

virtually unchanged.

- The 50-DMA at Y108.30 provides the initial bearish target after it limited

losses on Thursday. A break here would open the Nov 1 low of Y107.89. Meanwhile,

a rally above the 200-DMA at Y108.96 would expose the Nov 18 peak at Y109.07.

- Flash Japanese Jibun Bank PMIs are due later today. On next week's docket we

have retail sales (Thursday) Tokyo CPI, unemployment and flash industrial output

(Friday). BoJ's Sakurai will speak on Wednesday.