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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Yen Weakens on Downbeat Data

Article By: ,  Financial Analyst
June 30, 2020 1:14 AM

Yen Weakens on Downbeat Industrial Data

The USD/JPY holds up well after the Japanese government released worse-than-expected economic data.

Japan's industrial production dropped 8.4% on month in May (-5.7% expected), mainly dragged by automakers cutting back production. This followed a 9.8% contraction in April. Global demand remained weak in May thanks to coronavirus-induced lockdown of various major economies, causing severe impact to Japan's export-reliant manufacturing sector.

Japan Industrial Production (month-on-month):


Source: Trading Economics 


Meanwhile, the situation seemed to improve a bit in May (-8.4% vs -9.8% in April), and investors should watch closely to see if the improvement continues amid reopening of economies in the U.S. and around the world.

Also, Japan's jobless rate rose to 2.9% in May (2.8% expected) from 2.6% in April, the highest level in three years.

On an Intraday 30-minute Chart, USD/JPY remains on the upside after rebounding from a low of 107.04 seen yesterday.


Source: GAIN Capital, TradingView


Currently USD/JPY stays at levels above both 20-period and 50-period moving averages.

And it is striking against the Upper Bollinger Band. 

Therefore, the Technical Configuration still favor a Bullish intraday bias.

Overhead Resistance at expected at 107.90 (around the high of yesterday).

In case USD/JPY breaks above 107.90, it could encounter Further Resistance at 108.25. 

Bullish investors should regard the level of 107.40 (a previous price resistance) as the Key Support (Stop-loss Level).

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