Yen Weakens on Downbeat Industrial Data
Ming Lam June 30, 2020 5:14 AM
The USD/JPY holds up well after the Japanese government released worse-than-expected economic 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).
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.