USD/JPY trades flat at Y108.88 with......>

DOLLAR-YEN: USD/JPY trades flat at Y108.88 with both sides of the pair leading

gains among the G10 currencies. The rate touched an intraday low of Y108.73, as

the Nikkei 225 ebbed off to almost unch. Levels, with regional stocks hindered

by a soft Chinese Caixin manufacturing PMI print, but USD/JPY's losses were

quickly erased. Worth mentioning a free-trade deal between Japan and the EU

comes into force on Friday. The pact establishes the largest free-trade zone in

the world, which will encompass about 1/3 of global economy. 

- Familiar technical picture remains in play, with bears targeting Y108.50,

which limited Thursday's losses. A break below would open up the Jan 16 low of

Y108.36. On the topside, the 21-DMA at Y109.02 continues to attract bullish

attention and a breach of that level would bring the cloud Tenkan Sen at Y109.25

into view. 

- Japanese focus next week turns to trade balance due Friday & the usual BoJ

Rinban ops.