USD/JPY looking to regain 106.50 after declining in Wednesday's action

• Thin volumes ahead with Easter weekend touching down across the broader markets.
• Tokyo CPI figures to bump Yen action if Japan can keep inflation pumped up.

The USD/JPY is searching for some lift in the overnight session, trading into 106.50 ahead of the Tokyo markets.

Friday's action is going to be a slow affair with thin volumes as the Australian, New Zealand, UK, European, and American markets are all shuttered for the Easter long weekend. Tokyo will be remaining open but participation is going to be thin, and the only notable data on the Asia session will be year-on-year Tokyo Core CPI figures due at 23:30 GMT before the Friday rollover. Tokyo CPI is a precursor to the national inflation figures, and traders will be using the figures to adjust their expectations ahead of the broader numbers. Tokyo Core CPI is expected at 0.9 percent, in-line with the previous figure.

The USD/JPY fell steadily in Thursday's action, but caught some lift from a bottom at 106.25 and is climbing slowly in the pre-market. 

USD/JPY Levels to watch

As FXStreet's own Valeria Bednarik noted earlier, "Technically, the 4 hours chart shows that the pair managed to hold above a bearish 200 SMA, despite briefly breaking below it, while technical indicators stalled their declines and are attempting to regain the upside, having corrected extreme overbought readings, all of which leans the scale toward the upside for the upcoming sessions."

Support levels: 106.25 105.90 105.50   

Resistance levels: 106.60 107.00 107.40