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Forex - EUR/JPY trims losses after Barroso comments

Published 09/28/2011, 06:21 AM
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Investing.com – The euro trimmed losses against the yen on Wednesday, pulling away from the daily low as comments by European Commission President Jose Manuel Barroso supported the single currency.

EUR/JPY pulled back from 103.69, the daily low, to hit 104.30 during European morning trade, dipping 0.04%.

The pair was likely to find support at 102.22, Monday’s low and an almost 10-year low and resistance at 104.95, Tuesday’s high.

In a speech to the European Parliament earlier Barroso said that more would be done to tackle the debt crisis in the euro zone and indicated that the Commission was looking at ways to beef up the region’s bailout fund, the European Financial Stability Facility.

Barroso also said the European Central Bank should continue its support to the stability of the euro area.

"We trust that the ECB, in full respect of the treaty, will do whatever is necessary to ensure the integrity of the euro and to ensure its financial stability," he said.

But the euro’s gains were limited amid concerns over a lack of consensus among euro zone members on how best to address the financial crisis, with Germany remaining opposed to enlarging the capacity of the EUR440 billion EFSF.

Elsewhere, the euro was higher against the U.S. dollar, with EUR/USD climbing 0.56% to hit 1.3662.

Later in the day, the U.S. was to publish government data on durable goods orders, while Federal Reserve Chairman Ben Bernanke was scheduled to speak.

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