USD/JPY hits the new week with Japanese manufacturing data miss

• Japan's Taikan Manufacturing indicators miss forecasts, Yen jumps on fear reaction but overall markets remain quiet.
• Monday's macro calendar remains thin with half of the market still on holidays.

The USD/JPY dropped on reaction following Japan's Taikan Manufacturing indicators, and the pair is back into 106.25 after falling from 106.40.

The Japanese Taikan Manufacturing Outlook and Index indicators missed expectations and the Yen saw a brief spike in volatility as traders hesitated at the start of the week.

Taikan Manufacturing (Q1):

Taikan Manufacturing Outlook: 20 actual, 22 expected, 21 previous
Taikan Manufacturing Index:     24 actual, 25 expected, 26 previous

The Taikan All Industry Capex printed at 2.3 percent, a beat of the forecast 0.6 percent, but still a steady decline from the previous reading of 6.4 percent, and the Nikkei Manufacturing PMI also came in at 53.1 percent against the forecast 52.9, but also a slight tick lower than the previous 53.2 percent.

Next up for the Asia session will be China's Caixin Manufacturing PMI at 01:45 GMT, which is expected to come in at 51.7 versus the previous reading of 51.6. 

With Aussie and key European markets shuttered for the Easter Monday holiday, the next bout of action will be seen in the US session, at the ISM Manufacturing PMI which is expected to show a minor tick down, forecast at 60.0 versus the previous reading of 60.8.

USD/JPY Levels to watch

With markets gearing up for the new week but still partially on holidays, back-and-forth action will mark Monday's markets and support will be sitting at the last swing low near 106.10 and last week's swing low near 105.30, while resistance sits at last week's high of 107.00, with intraday resistance currently priced in at today's high of 106.40.