Investing.com – The euro extended losses against the yen on Monday, hovering close to a ten-year low as concerns over the worsening euro zone debt crisis and a possible Greek default prompted investors to pile into safer assets.
EUR/JPY hit 102.17 during European afternoon trade, the pair's lowest since September 26; the pair subsequently consolidated at 102.06, tumbling 1.06%.
The pair was likely to find support at 101.92, the low of September 26 and resistance at 103.72, the high of September 23.
The single currency remained under pressure, as concerns over the potential impact of a Greek default on Europe’s already fragile banking sector mounted after the Greek government said Sunday it will miss its deficit reduction targets for both this year and next.
Inspectors from the International Monetary Fund, the European Union and the European Central Bank continued talks in Athens, on whether the country is eligible to receive its crucial EUR8 billion installment of aid this month.
European financial ministers were scheduled later in the day to discuss options for increasing the capacity of the region’s bailout fund, the European Financial Stability Facility.
Elsewhere Monday, Japan's vice finance minister said the yen's appreciation did not reflect economic fundamentals in Japan.
"There’s no reason the Japanese yen should be targeted as a safe-haven currency or flight-to-safety currency," he said.
The yen was also higher against the U.S. dollar with USD/JPY falling 0.61%, to hit 76.57.
Also Monday, the Bank of Japan said the Tankan manufacturing index was in line with expectations in the second quarter, rising to 2 from minus 9 in the previous quarter.
A reading above zero indicates improving conditions and below zero indicates worsening conditions.
EUR/JPY hit 102.17 during European afternoon trade, the pair's lowest since September 26; the pair subsequently consolidated at 102.06, tumbling 1.06%.
The pair was likely to find support at 101.92, the low of September 26 and resistance at 103.72, the high of September 23.
The single currency remained under pressure, as concerns over the potential impact of a Greek default on Europe’s already fragile banking sector mounted after the Greek government said Sunday it will miss its deficit reduction targets for both this year and next.
Inspectors from the International Monetary Fund, the European Union and the European Central Bank continued talks in Athens, on whether the country is eligible to receive its crucial EUR8 billion installment of aid this month.
European financial ministers were scheduled later in the day to discuss options for increasing the capacity of the region’s bailout fund, the European Financial Stability Facility.
Elsewhere Monday, Japan's vice finance minister said the yen's appreciation did not reflect economic fundamentals in Japan.
"There’s no reason the Japanese yen should be targeted as a safe-haven currency or flight-to-safety currency," he said.
The yen was also higher against the U.S. dollar with USD/JPY falling 0.61%, to hit 76.57.
Also Monday, the Bank of Japan said the Tankan manufacturing index was in line with expectations in the second quarter, rising to 2 from minus 9 in the previous quarter.
A reading above zero indicates improving conditions and below zero indicates worsening conditions.