Investing.com – The euro surged to hit a fresh 5-week high against the yen on Wednesday, after Japan’s government intervened in currency markets for the first time in 6 years, to curb the yen’s sharp gains.
EUR/JPY hit 111.09 during European morning trade, the pair’s highest since August 13; the pair subsequently consolidated at 110.80, soaring 2.66%.
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, Japan’s Finance Minister Yoshihiko Noda said, "Deflation is continuing, and we are in severe economic conditions. Under those circumstances, recent movements [in the yen] will have adverse effects on the stability of economic and financial conditions and we can't overlook them."
He also said that Japan would continue to "closely monitor" foreign exchange movements and pledged further intervention if necessary.
Meanwhile, the euro was down against the U.S. dollar, with EUR/USD shedding 0.25% to hit 1.2966.
Later in the day, the euro zone was to produce key data on inflation and employment change.
EUR/JPY hit 111.09 during European morning trade, the pair’s highest since August 13; the pair subsequently consolidated at 110.80, soaring 2.66%.
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, Japan’s Finance Minister Yoshihiko Noda said, "Deflation is continuing, and we are in severe economic conditions. Under those circumstances, recent movements [in the yen] will have adverse effects on the stability of economic and financial conditions and we can't overlook them."
He also said that Japan would continue to "closely monitor" foreign exchange movements and pledged further intervention if necessary.
Meanwhile, the euro was down against the U.S. dollar, with EUR/USD shedding 0.25% to hit 1.2966.
Later in the day, the euro zone was to produce key data on inflation and employment change.