Investing.com - The euro trimmed gains against the yen on Wednesday, as ongoing fears over the debt crisis in the euro zone weighed on the single currency while the yen remained under pressure amid speculation that the Bank of Japan will soon implement further easing measures.
EUR/JPY pulled back from 106.89, the pair’s highest since April 13, to hit 106.32 during European afternoon trade, still up 0.18%.
The pair was likely to find support at 105.43, the low of April 11 and resistance at 107.45, the high of April 10.
Sentiment on the euro remained under pressure ahead of a critical auction of two and 10-year Spanish government bonds on Thursday, amid uncertainty over whether the government will be able to reduce one of the euro zone’s largest budget deficits in the face of a looming recession.
In addition, concerns over Spain’s troubled banking sector mounted after the country’s central bank reported that the amount of bad loans at domestic banks rose to an 18-year high in February.
Meanwhile, worries over Portugal’s economic health intensified after Prime Minister Pedro Passos Coelho said Wednesday there were "no guarantees" that the country would meet its commitment to return to the international capital markets before September 2013.
Elsewhere, the yen came under pressure amid growing speculation that the BoJ will likely take fresh easing steps at its next policy-setting meeting on April 27.
The currency was also weighed as investors eyed the release of Japan’s trade data on Thursday, amid expectations that the country’s trade balance swung to a deficit in March after posting a small surplus in February.
The yen was also lower against the U.S. dollar with USD/JPY climbing 0.63%, to hit 81.35.
Later in the day, the U.S. was to release official data on crude oil stockpiles.
EUR/JPY pulled back from 106.89, the pair’s highest since April 13, to hit 106.32 during European afternoon trade, still up 0.18%.
The pair was likely to find support at 105.43, the low of April 11 and resistance at 107.45, the high of April 10.
Sentiment on the euro remained under pressure ahead of a critical auction of two and 10-year Spanish government bonds on Thursday, amid uncertainty over whether the government will be able to reduce one of the euro zone’s largest budget deficits in the face of a looming recession.
In addition, concerns over Spain’s troubled banking sector mounted after the country’s central bank reported that the amount of bad loans at domestic banks rose to an 18-year high in February.
Meanwhile, worries over Portugal’s economic health intensified after Prime Minister Pedro Passos Coelho said Wednesday there were "no guarantees" that the country would meet its commitment to return to the international capital markets before September 2013.
Elsewhere, the yen came under pressure amid growing speculation that the BoJ will likely take fresh easing steps at its next policy-setting meeting on April 27.
The currency was also weighed as investors eyed the release of Japan’s trade data on Thursday, amid expectations that the country’s trade balance swung to a deficit in March after posting a small surplus in February.
The yen was also lower against the U.S. dollar with USD/JPY climbing 0.63%, to hit 81.35.
Later in the day, the U.S. was to release official data on crude oil stockpiles.