Investing.com - The euro rose to session highs against the yen on Tuesday as the threat of military action in Ukraine eased after Russian President Vladimir Putin said there is "no need yet" to use force.
EUR/JPY was last up 0.70% to 140.30, recovering from Monday’s lows of 139.14.
The pair is likely to find support at 139.25, the session low and resistance at 140.75.
Market sentiment recovered after President Putin said a Russian military deployment in Ukraine is not needed now but the “possibility” still remains.
The euro built on earlier gains after the Russian defense minister ordered troops engaged in military exercises close to Ukraine’s borders to return to their bases.
Market sentiment remained fragile, with Russian forces still maintaining a military presence in Ukraine’s Crimea region. Worries over the possibility of sanctions being imposed on Russia that could hamper the global economic recovery also lingered.
Investors were starting to turn their attention to Thursday’s European Central Bank policy meeting. The euro remained supported after slightly stronger-than-expected euro zone inflation data for
February last week eased pressure on the bank to tighten monetary policy, in order to stave off the risk of deflation.
The euro pulled back from session highs against the dollar, with EUR/USD up just 0.09% to 1.3746, after rising as high as 1.3782 earlier.
Elsewhere, the dollar was also higher against the yen. USD/JPY rose to session highs of 102.09 and was last up 0.62% to 102.07, moving off the previous session’s one-month lows of 101.19.