Investing.com – The euro extended gains against the yen on Monday, hitting a fresh 4-day high, as risk appetite sharpened after an upbeat assessment of the euro zone’s economic outlook by the European Commission.
EUR/JPY hit 107.92 during European afternoon trade, the pair’s highest since September 7; the pair subsequently consolidated at 107.89, soaring 1.11%.
The pair was likely to find support at 105.78, the low of September 8, and resistance at 109.54, the high of September 3.
Earlier in the day, the European Commission raised its growth forecast for the euro zone and the wider European Union for 2010, saying that strong growth in industrial exports is driving a faster-than-expected recovery from the recent global economic crisis.
The EC said it now expected the region’s economy to expand by 1.7%, up from a previous estimate of 0.9%.
Commenting on the report, Economic and Monetary Affairs Commissioner Olli Rehn said, “The European economy is clearly on a path of recovery, more strongly than forecast in the spring, and the rebound of domestic demand bodes well for the job market".
The euro was also up against the U.S. dollar, with EUR/USD gaining 1.23% to hit 1.2838.
Also Monday, Ichiro Ozawa, who is challenging Prime Minister Naoto Kan for leadership of Japan’s ruling Democratic Party, said that he would “take all measures including market intervention to protect Japan's economy" if he was elected.
EUR/JPY hit 107.92 during European afternoon trade, the pair’s highest since September 7; the pair subsequently consolidated at 107.89, soaring 1.11%.
The pair was likely to find support at 105.78, the low of September 8, and resistance at 109.54, the high of September 3.
Earlier in the day, the European Commission raised its growth forecast for the euro zone and the wider European Union for 2010, saying that strong growth in industrial exports is driving a faster-than-expected recovery from the recent global economic crisis.
The EC said it now expected the region’s economy to expand by 1.7%, up from a previous estimate of 0.9%.
Commenting on the report, Economic and Monetary Affairs Commissioner Olli Rehn said, “The European economy is clearly on a path of recovery, more strongly than forecast in the spring, and the rebound of domestic demand bodes well for the job market".
The euro was also up against the U.S. dollar, with EUR/USD gaining 1.23% to hit 1.2838.
Also Monday, Ichiro Ozawa, who is challenging Prime Minister Naoto Kan for leadership of Japan’s ruling Democratic Party, said that he would “take all measures including market intervention to protect Japan's economy" if he was elected.