Investing.com – The euro was higher against the yen on Monday, after rebounding from a two-week low, following unprecedented actions by the Bank of Japan to boost liquidity and stem yen gains in the wake of Friday's earthquake and tsunami.
EUR/JPY rebounded from 112.48, the pair’s lowest since February 28, to hit 114.26 during European late morning trade, gaining 0.41%.
The pair was likely to find support at 112.48, the days low and resistance at 115.23, last Thursday’s high.
Earlier in the day, the BoJ announced that it was pumping a record JPY15 trillion into the financial system and doubling the size of its asset-purchase program to JPY10 trillion to bolster confidence in the economy, following a massive earthquake, a tsunami and a nuclear emergency.
Also weighing on the yen were reports that a reactor at the nuclear power plant in Fukushima, north of Tokyo, lost its cooling system, following a hydrogen explosion at another reactor.
Jiji news agency said fuel rods at the No. 2 reactor had been entirely exposed and a fuel rod meltdown could not be ruled out.
The euro was also up against the U.S. dollar, with EUR/USD climbing 0.43% to hit 1.3958.
Sentiment on the single currency was boosted after European Union leaders agreed Friday to increase the effective lending capacity of the European Financial Stability Facility.
The agreement should ensure that the fund is capable of bailing out any euro zone states beyond Greece and Ireland that require assistance.
EUR/JPY rebounded from 112.48, the pair’s lowest since February 28, to hit 114.26 during European late morning trade, gaining 0.41%.
The pair was likely to find support at 112.48, the days low and resistance at 115.23, last Thursday’s high.
Earlier in the day, the BoJ announced that it was pumping a record JPY15 trillion into the financial system and doubling the size of its asset-purchase program to JPY10 trillion to bolster confidence in the economy, following a massive earthquake, a tsunami and a nuclear emergency.
Also weighing on the yen were reports that a reactor at the nuclear power plant in Fukushima, north of Tokyo, lost its cooling system, following a hydrogen explosion at another reactor.
Jiji news agency said fuel rods at the No. 2 reactor had been entirely exposed and a fuel rod meltdown could not be ruled out.
The euro was also up against the U.S. dollar, with EUR/USD climbing 0.43% to hit 1.3958.
Sentiment on the single currency was boosted after European Union leaders agreed Friday to increase the effective lending capacity of the European Financial Stability Facility.
The agreement should ensure that the fund is capable of bailing out any euro zone states beyond Greece and Ireland that require assistance.