Investing.com – The euro extended earlier gains against the yen on Wednesday, surging to hit a fresh 5-week high, after Japan’s government intervened in the currency market to curb the yen’s recent sharp gains.
EUR/JPY hit 111.45 during European afternoon trade, the pair’s highest since August 11; the pair subsequently consolidated at 111.41, soaring 3.22%.
The pair was likely to find support at 106.76, Tuesday’s low, and resistance at 112.60, the high of August 11.
Earlier in the day, a Japanese Ministry of Finance official indicated that the move would not be an end to Japan’s efforts to stem the yen's gains saying, "When foreign-exchange intervention changes rates, there will be new buyers and sellers and [we] respond to that continuously".
Meanwhile, the Governor of the Bank of Japan Masaaki Shirakawa said that he “strongly expects that the action taken by the Ministry of Finance in the foreign exchange market will contribute to stable foreign exchange rate formation."
The euro was also up against the U.S. dollar, with EUR/USD gaining 0.11% to hit 1.3013.
Earlier Wednesday, official data showed that the annualized rate of consumer price inflation in the euro zone declined in line with expectations in August.
EUR/JPY hit 111.45 during European afternoon trade, the pair’s highest since August 11; the pair subsequently consolidated at 111.41, soaring 3.22%.
The pair was likely to find support at 106.76, Tuesday’s low, and resistance at 112.60, the high of August 11.
Earlier in the day, a Japanese Ministry of Finance official indicated that the move would not be an end to Japan’s efforts to stem the yen's gains saying, "When foreign-exchange intervention changes rates, there will be new buyers and sellers and [we] respond to that continuously".
Meanwhile, the Governor of the Bank of Japan Masaaki Shirakawa said that he “strongly expects that the action taken by the Ministry of Finance in the foreign exchange market will contribute to stable foreign exchange rate formation."
The euro was also up against the U.S. dollar, with EUR/USD gaining 0.11% to hit 1.3013.
Earlier Wednesday, official data showed that the annualized rate of consumer price inflation in the euro zone declined in line with expectations in August.