USD/JPY: Japan’s industrial production plunged in May


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD rose 0.32% against the JPY and closed at 107.58.

In the Asian session, at GMT0300, the pair is trading at 107.78, with the USD trading 0.19% higher against the JPY from yesterday’s close.

Overnight data showed that Japan’s unemployment rate rose to 2.9% in May, compared to a rate of 2.6% in the previous month. Moreover, industrial production plunged 25.9% on a yearly basis in May, more than market consensus for a drop of 11.3% and compared to a fall of 15.0% in the previous month.

The pair is expected to find support at 107.25, and a fall through could take it to the next support level of 106.73. The pair is expected to find its first resistance at 108.09, and a rise through could take it to the next resistance level of 108.41.

Moving forward, traders would keep a watch on Japan’s construction orders and annualised housing starts, both for May, slated to release in a few hours.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

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