Local Data Awaited

Broader greenback recovery drove USD/JPY higher Thursday, as U.S. Tsy yields & benchmark stock indices on Wall Street crept higher. Gains were capped by the 50% retracement of the Mar 31 - Apr 23 slide at Y109.23. Liquidity was sapped by a market closure in Japan.

• Tokyo is back for just one day and we will see a major data dump. Unemployment, Tokyo CPI, flash industrial output, final Jibun Bank M'fing PMI, housing starts & consumer confidence are all due later today. It is also a Gotobi day today.
• Expect liquidity to remain thinned out nonetheless, as many local participants usually take this one day off. As a reminder, the Golden Week lasts through Wednesday. Looking further afield, Japanese earnings data & final Jibun Bank PMIs are due for release next Friday.
• Ex-BoJ Member Sakurai told MNI that the BoJ's policy framework is set in stone through the rest of Haruhiko Kudora's tenure as the Bank's Governor.
• USD/JPY last trades flat at Y108.91 and a rally above the aforementioned 50% Fibo resistance would clear the way to Apr 9 high of Y109.96. Bears keep an eye on Apr 27 low of Y108.08, followed by bear trigger at Y107.48, which represents the low print of Apr 23.