Question
LED junction does not actually emit that much light so the epoxy resin body is constructed in such a way that the photons emitted by the junction are reflected away from the surrounding substrate base to which the diode is attached and are focused upwards through the domed top of the LED, which itself acts like a lens concentrating the light. This is why the emitted light appears to be brightest at the top of the LED.

Answer

The pn-junction of an LED is encased in a transparent, hard plastic (epoxy resin), not only for shock protection but also for enhancing the brightness in one direction. Light emitted by the pn-junction is not directional. The hemispherical epoxy lens focuses the light in the direction of the hemispherical part. This is why the emitted light appears to be brightest at the top of the LED.

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