Forex - EUR/JPY falls to 3-day low on debt plan uncertainty
Investing.com
Published Oct 26, 2011 10:40AM ET
EUR/JPY hit 105.04 during U.S. morning trade, the pair's lowest since October 21; the pair subsequently consolidated at 105.05, sliding 0.70%.
The pair was likely to find support at 104.18, the low of October 12 and short term resistance at 106.56, the high of October 13.
Market sentiment weakened following reports that EU discussions with banks on Greek bond losses were currently deadlocked, while European leaders appeared to be unsure whether a full solution to the debt crisis would be unveiled by the end of Wednesday's summit.
The single currency found support earlier, after the German parliament approved further changes to the role of the euro zone's bailout fund.
Investor confidence was also boosted by comments from incoming European Central Bank president, Mario Draghi, signaling that the bank would continue its bond-buying policy.
The euro was also lower against the U.S. dollar with EUR/USD shedding 0.43%, to trade at 1.3846.
Also Wednesday, the yen hit an all- time high against the U.S. dollar, prompting speculation that over an intervention in the foreign exchange market by Japan.
Japanese finance minister Jun Azumi said earlier that he would not rule out any possible measure to curb the appreciation of the yen and added that he has instructed finance ministry officials to "make preparations so that we can act in response to anything."
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Written By: Investing.com
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