Investing.com - The euro edged higher against the yen on Wednesday, as hopes for fresh action by the European Central Bank to stem the euro zone debt crisis continued to support the single currency, while markets eyed Federal Reserve Chairman Ben Bernanke’s speech on Friday.
EUR/JPY hit 98.79 during European afternoon trade, the daily high; the pair subsequently consolidated at 98.68, adding 0.05%.
The pair was likely to find support at 97.87, Tuesday’s low and resistance at 99.60, the high of June 27.
Demand for the single currency remained supported by expectations that the ECB is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
Earlier Wednesday, Italy saw borrowing costs decline to the lowest level since March after it auctioned EUR9 billion of six-month government bonds, reflecting investor confidence that the ECB will soon act to lower high euro zone peripheral bond yields.
Separately, official data showed that German consumer price inflation accelerated at the fastest rate since May this month, rising 0.3%, compared to expectations for a 0.2% increase.
Meanwhile, investors were anticipating a speech by the Federal Reserve chairman at an annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.
Market participants were also eyeing U.S. data to be released later in the day, for further indications on the strength of the country’s economic recovery.
The U.S. Commerce Department said earlier that gross domestic product increased at a seasonally adjusted annual rate of 1.7% in the three months to June, in line with expectations and up from a preliminary estimate of 1.5%.
Elsewhere, the yen was lower against the U.S. dollar with USD/JPY rising 0.14%, to hit 78.62.
Later in the day, the U.S. was to release an industry report on pending home sales.
EUR/JPY hit 98.79 during European afternoon trade, the daily high; the pair subsequently consolidated at 98.68, adding 0.05%.
The pair was likely to find support at 97.87, Tuesday’s low and resistance at 99.60, the high of June 27.
Demand for the single currency remained supported by expectations that the ECB is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
Earlier Wednesday, Italy saw borrowing costs decline to the lowest level since March after it auctioned EUR9 billion of six-month government bonds, reflecting investor confidence that the ECB will soon act to lower high euro zone peripheral bond yields.
Separately, official data showed that German consumer price inflation accelerated at the fastest rate since May this month, rising 0.3%, compared to expectations for a 0.2% increase.
Meanwhile, investors were anticipating a speech by the Federal Reserve chairman at an annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.
Market participants were also eyeing U.S. data to be released later in the day, for further indications on the strength of the country’s economic recovery.
The U.S. Commerce Department said earlier that gross domestic product increased at a seasonally adjusted annual rate of 1.7% in the three months to June, in line with expectations and up from a preliminary estimate of 1.5%.
Elsewhere, the yen was lower against the U.S. dollar with USD/JPY rising 0.14%, to hit 78.62.
Later in the day, the U.S. was to release an industry report on pending home sales.