FxWirePro: USD/JPY extends previous session's rally, downbeat comments from WHO and sluggish Japan data supports gains

USD/JPY chart - Trading View 

USD/JPY was extending previous session's rally and was trading 0.19% higher at 107.77 at 06:15 GMT.

Upbeat US data overnight triggered risk reset, but couldn’t last long as virus woes continue to haunt.

Data released earlier today showed Japan’s May month Unemployment Rate rose more than 2.8% forecast to print a 2.9% mark. 

Further, the preliminary readings of May month Industrial Production slumped 25.9% versus 11.3% prior YoY expectations. 

Downbeat comments from the World Health Organization (WHO) and sluggish data from Japan keep yen depressed.

Traders look forward to US Chicago Purchasing Managers’ Index, Consumer Confidence and testimonies by the US Fed Chair Powell as well as Treasury Secretary Mnuchin for impetus.

Price action has broken above 21-EMA resistance and edged above 4H 200MA. The pair has now paused at 110-EMA at 107.86. 

Technical indicators on the daily charts are slightly bullish. Stochs and RSI are biased higher. Break above 110-EMA will see gains till 200-DMA.

Major Support: 107.36 (21-EMA)

Major Resistance: 108.37 (200-DMA)