Japan's industrial output fell 8.4% in May from the previous month to mark a fourth straight month of declines, government data showed on Tuesday, underscoring the pain inflicted by the coronavirus pandemic on factory activity.

The fall compared with a median market forecast of a 5.6% decline in a Reuters poll of economists.

Manufacturers surveyed by the Ministry of Economy, Trade and Industry (METI) expect output to rise 5.7% in June and increase 9.2% in July, the data showed,

Reuters reported.

USD/JPY update

Unchanged on the data, USD/JPY has been rejected in the 107.80s but has found support o the correction of the impulse at the mid-point of the 107 level.

Description of the Unemployment Rate

The Unemployment Rate which comes from the Ministry of Health, Labour and welfare and it's published by the Japan Statistics Bureau, is a measure of the percentage of unemployed in Japan. A high percentage indicates weakness in the labor market which influences the strength and direction of the Japanese economy. Therefore, a low percentage should be taken as positive or bullish for the JPY.

Description the Industrial Production

The Industrial Production released by the Ministry of Economy, Trade and Industry measures outputs of the Japanese factories and mines. Changes in industrial production are widely followed as a major indicator of strength in the manufacturing sector. A high reading is seen as bullish for the JPY, whereas a low reading is seen as bearish.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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