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Forex - EUR/JPY hits session high after positive U.S. data

Published 11/17/2011, 09:10 AM
USD/JPY
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EUR/JPY
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Investing.com - The euro edged higher against the yen on Thursday, as upbeat U.S. data strengthened market sentiment but the single currency remained vulnerable amid sustained concerns over the debt crisis in the euro zone.

EUR/JPY hit 104.06 during European afternoon trade, the daily high; the pair subsequently consolidated at 104.02, rising 0.30%.

The pair was likely to find support at 102.72, the low of October 10 and resistance at 105.51, the high of September 19.

Market sentiment improved after government data showed that U.S. building permits rose more-than-expected in October, climbing to the highest level since March 2010.

The report also showed that U.S. housing starts were largely unchanged in October, holding steady at 0.63 million, compared to expectations for a decline to 0.61 million. 

A separate report revealed that the number of people who filed for unemployment assistance in the U.S. in the week ending November 11 fell by 5,000 to a seven-month low.

But investors remained jittery after Spanish 10-year bond yields surged to a euro-era high of 6.97%, close to the 7% threshold widely seen as unsustainable in the long term.

Meanwhile, French 10-year bond yields also climbed to their highest level since the inception of the single currency, adding to fears over sovereign debt contagion to core euro zone economies.

Elsewhere, the yen was up against the U.S. dollar with USD/JPY inching down 0.12%, to hit 76.95.

Also Thursday, the Bank of Japan said the country's economic activity has continued picking up, although at a more moderate pace, and that the value of the yen against the greenback remained at more or less the same levels as last month.

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