EUR/JPY lacks direction as Japan Housing data sails by with no impact
- A lack of meaningful volume is constraining major price movements, leaving Yen pairs to whip in no particular direction.
- Yen data is having a muted impact ahead of France, Italy CPIs in the European session.
The EUR/JPY is whipping in Tokyo markets on thin volumes with most exchanges and banks shuttered for the Easter long weekend, and the pair is currently sitting near 130.80.
A lack of activity and thin volumes is whipping the Yen pairs around in holiday markets, but most of the activity is directionless with most market liquidity dormant for the long weekend. The EUR/JPY spiked up to 131.08 after reaching a session low of 130,62, but the Yen is beginning to hunker down as the Tokyo session nears the end of the day.
Japanese Housing Starts came in at -2.3 percent, still a decline but less so than the forecast -3.9 percent, and a significant improvement over the previous -13.2 percent contraction in the previous period. Construction Orders also came in at 19.2 percent, far above the 0.9 percent reading previously, but the indicator has a tendency for volatile swings.
The European session will be a quiet affair with Germany and other high-liquidity markets closed for the long weekend, but we will still see France's EU normalized CPI at 06:45 GMT, followed by the Italian EU normalized CPI at 09:00 GMT. The France CPI is expected to come in at 1.5 percent versus the previous 1.3 percent, while Italian CPI is forecast at 0.8 percent against the previous 0.5 percent.
EUR/JPY Levels to watch
With holiday volumes producing non-directional volatility, intraday support has been pushed out to yesterday's low at 130.60, with further support from the week's opening price of 129.30, while resistance sits at yesterday's swing low near 131.15 and the week's high point at 131.80.