JPY Treads Water After Japanese Data Dump

USD/JPY slid into Thursday's London morning, but recoiled thereafter amid broader demand for the greenback. Month-end flows & dovish ECB messaging helped push the rate higher in the second half of the day, resulting in the formation of a bullish engulfing candlestick pattern.

• USD/JPY last deals -3 pips at Y104.58. A clearance of Y104.73, which capped gains yesterday, would turn focus to Oct 26 high of Y105.06, the key near-term resistance. Bears look for a dip through Sep 21 low of Y104.00, which represents the initial bear trigger.
• Local data dump provided some interest this morning. Preliminary industrial output expanded faster than expected on a M/M basis and its Y/Y decline was slower than forecast. Labour market data also positively surprised, with unemployment remaining unchanged at 3.0% vs. exp. of 3.1%. However, headline the deflation of consumer prices in Tokyo was faster than projected, even as core metrics printed in line with expectations.
• Japan is yet to report housing starts/construction orders later today.
• Next week, focus turns to final Jibun Bank M'fing PMI (Monday), BoJ Sep meeting minutes (Wednesday) & earnings/spending data (Friday).