Investing.com - The euro swung between small gains and losses against the yen in choppy trade on Tuesday, supported by a successful Spanish bond auction while markets remained uncertain over Greece’s ability to overcome its debt crisis despite a second bailout package.
EUR/JPY hit 105.05 during European afternoon trade, the daily low; the pair subsequently consolidated at 105.51, inching down 0.07%.
The pair was likely to find support at 104.64, the low of February 20 and resistance at 106.36, the high if November 11.
Euro zone finance ministers agreed earlier to the details of a new financial package for Greece, which will reduce the country’s debt to 120.5% of gross domestic product by 2020.
Private-sector creditors also agreed to take a write-down on their bonds of 53.5%, more than the 50% write-down that had been conceded before the meeting, which is expected to cut Greece's debt by EUR107 billion.
But investors remained wary amid concerns that a general election in Greece, which is expected to take place in April, could result in problems implementing the terms of the package.
Meanwhile, a report on the sustainability of Greece’s debt by the Troika, which is composed of the European Union, European Central Bank and the International Monetary Fund, said that "additional debt relief" will be required in the future.
The euro found support after Spain sold EUR1.7 billion of three-month treasury bills earlier, at an average yield of 0.39%, down from 1.28% at a similar auction last month, and EUR764 million of six-month bills 0.77%, 1% less than the previous month.
These were the lowest interest rates paid in the two maturities since March and April 2010 respectively.
Elsewhere, the yen fell to a multi-month low against the U.S. dollar with USD/JPY rising 0.12%, to hit 79.73.
The yen remained under pressure after official data showed on Monday that Japan posted a record JPY1.47 trillion trade deficit in January, fanning concerns that the strong yen is having a negative impact on the country’s largely export driven economy.
EUR/JPY hit 105.05 during European afternoon trade, the daily low; the pair subsequently consolidated at 105.51, inching down 0.07%.
The pair was likely to find support at 104.64, the low of February 20 and resistance at 106.36, the high if November 11.
Euro zone finance ministers agreed earlier to the details of a new financial package for Greece, which will reduce the country’s debt to 120.5% of gross domestic product by 2020.
Private-sector creditors also agreed to take a write-down on their bonds of 53.5%, more than the 50% write-down that had been conceded before the meeting, which is expected to cut Greece's debt by EUR107 billion.
But investors remained wary amid concerns that a general election in Greece, which is expected to take place in April, could result in problems implementing the terms of the package.
Meanwhile, a report on the sustainability of Greece’s debt by the Troika, which is composed of the European Union, European Central Bank and the International Monetary Fund, said that "additional debt relief" will be required in the future.
The euro found support after Spain sold EUR1.7 billion of three-month treasury bills earlier, at an average yield of 0.39%, down from 1.28% at a similar auction last month, and EUR764 million of six-month bills 0.77%, 1% less than the previous month.
These were the lowest interest rates paid in the two maturities since March and April 2010 respectively.
Elsewhere, the yen fell to a multi-month low against the U.S. dollar with USD/JPY rising 0.12%, to hit 79.73.
The yen remained under pressure after official data showed on Monday that Japan posted a record JPY1.47 trillion trade deficit in January, fanning concerns that the strong yen is having a negative impact on the country’s largely export driven economy.