FXStreet (Mumbai) - Last week’s US dollar weakness extends into Asia as markets continue to consolidate post-FOMC gains while the yen loses ground following the release of weak Japanese macro data. The Antipodeans remain supported amid low volumes as the OZ markets remain closed today on account of Boxing Day holiday. Key headlines in Asia China’s industrial profits dropped on-year in Nov Japan: Growth likely to pick up in 2016 – Goldman Sachs A quiet start in the run up to the New Year A typical holiday-thinned trading is witnessed in Asia so far, with most traders still on the side-lines on the back of Christmas-New Year holiday season. The Australian, New Zealand and the major European markets remain closed in observance of Boxing Day holiday. Hence, low volumes and irregular volatility is expected to remain in the week ahead. Calendar-wise, we had a set of poor Japanese economic data released earlier today, which dragged the yen lower against its American counterpart. The USD/JPY pair partially reversed last week’s losses and edged marginally higher around 120.40, with the upside still capped by broad based USD weakness. Industrial production in Japan was down a seasonally adjusted 1.0% m/m in November, missing forecasts for a decline of 0.5% following the 1.4 percent gain in October. While the total value of retail sales in Japan was down 1.0% on year in November. While the Antipodeans remain supported amid illiquid markets and shrug off lower commodities’ prices as markets continue to mull over Fed’s lift-off and the latest Chinese industrial profits data released over the weekend. The Chinese industrial profits fell 1.4% in Nov from a year earlier, compared with 4.6% for last month, marking a sixth consecutive month of decline. On the equities space, mixed sentiment persists on the Asian bourses, with Japan’s benchmark, the Nikkei rallying 0.80% to 18,916. While the mainland China’s benchmark, the Shanghai Composite gains 0.22% to trade at 3,620, while Hong Kong’s Hang Seng drops -0.51% to 22,028. EUR/USD Technicals Valeria Bednarik, Chief Analyst at FXStreet explained, “The common currency is still fighting dollar's strength having recovered above the 1.0880 level, which acted as a strong resistance in the previous days. Nevertheless, the pair is still contained below the 1.1000 level, having been unable to advance beyond it on short lived spikes through it. The 4 hours chart presents a slightly bullish tone, as despite the price is developing above a bullish 20 SMA, the Momentum indicator holds flat right above its 100 level, indicating not enough upward strength at the time being. Support levels: 1.0955 1.0920 1.0880 Resistance levels: 1.1000 1.1045 1.1090.” For more information, read our latest forex news.