Investing.com - The euro advanced against the yen on Wednesday ahead of the European Central Bank's long-term refinancing program, which will make financing readily accessible to banks to spur lending and economic activity.
In Asian trading on Wednesday, EUR/JPY hit 108.45, up 0.15% and up from a low of 108.27 and off a high of 108.73.
The pair sought to test support at 107.30, Tuesday's low, and resistance at 109.74, Monday's high.
The ECB's second long-term refinancing operation makes three-year loans available to banks at attractive interest rates and collateral requirements.
The program aims to increase the value of assets like government debt in participating countries, which is bullish for the euro.
Market sentiment estimated the ECB making EUR500 billion available to banks through the low-cost loans.
That operation begins later Wednesday, and sent the euro up against most other currencies.
The yen, meanwhile, has been weakening on Bank of Japan easing measures.
Japan's central bank has said it would allocate JPY10 trillion to an asset-purchasing program as a move to weaken the currency as well as tweak inflation policies.
Such easing measures worked in weakening the yen, whose recent strengthening trend has crimped business in Japan's key export sector.
The yen, meanwhile, was down against the pound and up against the Australian dollar, with GBP/JPY rising 0.13% to 128.12 and AUD/JPY down 0.37% at 86.96.
Later Wednesday, the eurozone will release a report on consumer price inflation in the single currency bloc.
Elsewhere, Finland’s parliament is to vote on Greece’s bailout, while the ECB is to launch its second refinancing operation.
The U.S. is to release a preliminary report on fourth-quarter GDP, the broadest measure of economic activity and the primary gauge of the economy’s health. The country is also to report on manufacturing activity in the Chicago area.
Also Wednesday, Federal Reserve Chairman Ben Bernanke is due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.
Japan is set to unveil capital spending numbers.
In Asian trading on Wednesday, EUR/JPY hit 108.45, up 0.15% and up from a low of 108.27 and off a high of 108.73.
The pair sought to test support at 107.30, Tuesday's low, and resistance at 109.74, Monday's high.
The ECB's second long-term refinancing operation makes three-year loans available to banks at attractive interest rates and collateral requirements.
The program aims to increase the value of assets like government debt in participating countries, which is bullish for the euro.
Market sentiment estimated the ECB making EUR500 billion available to banks through the low-cost loans.
That operation begins later Wednesday, and sent the euro up against most other currencies.
The yen, meanwhile, has been weakening on Bank of Japan easing measures.
Japan's central bank has said it would allocate JPY10 trillion to an asset-purchasing program as a move to weaken the currency as well as tweak inflation policies.
Such easing measures worked in weakening the yen, whose recent strengthening trend has crimped business in Japan's key export sector.
The yen, meanwhile, was down against the pound and up against the Australian dollar, with GBP/JPY rising 0.13% to 128.12 and AUD/JPY down 0.37% at 86.96.
Later Wednesday, the eurozone will release a report on consumer price inflation in the single currency bloc.
Elsewhere, Finland’s parliament is to vote on Greece’s bailout, while the ECB is to launch its second refinancing operation.
The U.S. is to release a preliminary report on fourth-quarter GDP, the broadest measure of economic activity and the primary gauge of the economy’s health. The country is also to report on manufacturing activity in the Chicago area.
Also Wednesday, Federal Reserve Chairman Ben Bernanke is due to testify on the semi-annual monetary policy report before the House Financial Services Committee in Washington.
Japan is set to unveil capital spending numbers.