Disappointing Japanese data continues to hurt the yen as Mach Industrial Production plunged. The USD / JPY is neutral to bullish in the short term and should stay above 107.30, said Valeria Bednarik, chief analyst at FXStreet.
“Japan released March industrial production, which fell 3.7% in MoM and 5.2% from the previous year, meeting market expectations. Capacity utilization in the same month contracted 3.6% less than expected. ”
“The USD / JPY pair is trading around a flat 200 SMA in its 4-hour chart, while the 20 SMA is gaining in strength below the current level. However, technical indicators lack directional strength at positive levels. “
“The USD / JPY is expected to hold above 107.30, immediate support, and accelerate across the region of 107.70 to become more attractive to bulls.”