The Japanese yen dropped against its major opponents in the European session on Friday, after Japanese officials warned against a strengthening currency, saying that they will monitor the forex market with a sense of urgency.

Japanese Finance Minister Taro Aso cautioned that the yen is appreciating very quickly, which will impact authorities' struggle to boost external demand.

"Stability is important, so I'm closely monitoring it with a sense of urgency," he told after a cabinet meeting.

Officials from Japan's Ministry of Finance, the Bank of Japan and the Financial Services Agency are holding a meeting to discuss financial markets.

The yen's rise came against the backdrop of dismal U.S. GDP data for the second quarter and rising coronavirus cases world wide.

The currency's retreat was also aided by investor optimism over encouraging earnings updates from U.S. technology giants Amazon, Apple, Alphabet and Facebook.

In economic news, industrial production in Japan rose a seasonally adjusted 2.7 percent on month in June, beating forecasts for a gain of 1.2 percent following the 8.9 percent decline in May.

The unemployment rate in Japan came in at a seasonally adjusted 2.8 percent in June, beating forecasts for 3.1 percent and down from 2.9 percent in May. The job-to-applicant ration fell to 1.11, missing expectations for 1.16 and down from 1.2 in the previous month.

The yen pulled back to 104.86 against the greenback, from a 3-1/2-month high of 104.19 seen at 10:30 pm ET. The yen is seen finding support around the 108.00 region.

The yen weakened to 137.58 against the pound, its lowest level since June 9. The next possible support for the yen is seen around the 141.00 level.

Survey data from the Nationwide Building Society showed that UK house prices unexpectedly rose in July as activity picked up after the lockdown restrictions to battle the coronavirus pandemic were eased.

The house price index rose 1.5 percent year-on-year after a 0.1 percent fall in June. Economists had forecast a 0.3 percent drop.

The yen dropped to 115.43 against the franc, representing a 1-week low. If the yen slides further, it may find support around the 118.00 level.

The yen eased to 78.10 against the loonie, from more than a 2-month high of 77.61 set at 12:00 am ET. On the downside, 80.00 is possibly seen as the next support level for the yen.

After rising to 75.01 at 11:05 pm ET, the yen retreated to 75.42 against the aussie. The yen is likely test support around the 78.00 area.

The yen fell back to 124.26 against the euro, not far from near a 2-month low of 124.31 hit in the Asian session. The yen is poised to find support around the 126.00 mark.

Flash estimate from Eurostat showed that the euro area economy contracted at the fastest pace on record in the second quarter amid the coronavirus pandemic.

Gross domestic product fell 12.1 percent on a quarterly basis, bigger than the 3.6 percent drop in the first quarter. This was bigger than the economists' forecast of 11.2 percent and was the sharpest decline seen since the series began in 1995.

The yen showed a modest pullback against the kiwi, touching 70.9. Should the yen slides further, 72.00 is found as its next support level.

Looking ahead, Canada GDP data for May and industrial product price index for June, U.S. personal income and spending data for the same month and University of Michigan's final consumer sentiment index for July will be featured in the New York session.

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