USD/JPY sits a touch lower at Y108.62....>

DOLLAR-YEN: USD/JPY sits a touch lower at Y108.62. The local CPI data, due

within ~45 minutes' time, will be under the microscope today.

- Thursday saw an increase in the pair's volatility, as it created a bearish

outside day candlestick. Having already edged slightly higher, it pushed to its

best levels of the session upon confirmation that the UK & EU have reached a new

Brexit agreement. That said, the DUP's refusal to back the deal prompted a move

away from those highs. The retreat was extended amid a broad USD sell-off aided

by disappointing data (incl. industrial production, housing starts & Philly Fed

survey) out of the U.S. A degree of recovery was seen ahead of the close.

- Bears look for a clean break under the previous resistance zone from the highs

of Sep 18, Sep 19 & Oct 1 at Y108.48-47 after USD/JPY failed to make headway

beyond there on Thursday. A clearance of the level would bring into view the

Y108.00 mark, which happens to represent the 38.2% retracement of the Oct range.

Bulls need a push above Thursday's peak at Y108.94 and ideally above the 200-DMA

at Y109.08 to regain some momentum and target Y109.32, the high of Aug 1.

- Gov Kuroda noted that the BoJ will not hesitate to ease policy if risks rise.