USD/JPY: The risk is slowly skewing to the upside

Dismal Japanese data keeps hurting the yen as Mach Industrial Production plunged. USD/JPY is neutral-to-bullish in the short-term and needs to hold above 107.30, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“Japan released March Industrial Production, which fell by 3.7% MoM and by 5.2% when compared to a year earlier, meeting the market’s expectations. Capacity Utilization in the same month contracted 3.6% worse than anticipated.” 

“The USD/JPY pair is trading around a flat 200 SMA in its 4-hour chart, while the 20 SMA gains bullish strength below the current level. Technical indicators, however, lack directional strength within positive levels.”

“USD/JPY would need to hold above 107.30, the immediate support, and accelerate through the 107.70 region to become more attractive for bulls.”