USD/JPY continues to bounce off 4-month high in week's last session

The US dollar fluctuated lower in a tight range during the Asian session to see its rebound for the third session since December 20 against the Japanese Yen, following developments and economic data that got released by the Japanese economy, the third largest economy in the world and on the threshold of American housing market data release amid the shutdown of the US market due to the Good Friday holiday.

At 05:47 GMT, USD/JPY dropped 0.05% to 111.91 compared to the opening levels at 111.98 after the pair reached a low of 111.90 and a high of 1122.01.

On the Japanese economy, the release of the National Consumer Price Index annual reading showed that growth accelerated to 0.5% in line with expectations compared to 0.2% in February, while the annual core reading of the same index (food excluding energy and fresh food) showed that growth accelerated to 0.8% compared to the previous reading and expectations at 0.7%.

The Japanese government announced earlier this month a 10-day holiday from Saturday (27 April) to Monday (6 May) for Japan's celebrations of the new emperor there, which for crowning the Prince at the beginning of May, it's worth mentioning that this six-day holiday will be the longest in Japan's history.

On the other hand, investors expect the US economy to release the housing market data with the reading of both the Construction Starts Index and Construction Permits, which may reflect a rise in March, where construction permits are expected to rise 0.7% to 1,300K. Compared to a drop of 1.6% at 1,296 thousand. Initial construction starts may also rise 5.9% to 1,230,000 versus 8.7% at 1,162 homes.