Investing.com - The euro was trading close to four year highs against the yen on Tuesday, as expectations that the Bank of Japan will implement further stimulus measures next year continued to pressure the yen.
EUR/JPY dipped 0.03% to 137.38, holding below four-year highs of 137.94 struck on Monday.
The pair is likely to find support at 136.90 and near-term resistance at 138.00.
The euro shrugged off dovish remarks by European Central Bank board member Benoit Coeure, who said Tuesday that negative deposit rates are still a possibility.
Investors were turning their attention to preliminary euro zone inflation data, due out on Friday, amid expectations that the annual rate of inflation would rise to 0.8% in November, from October’s four year low of 0.7%.
The slowdown in euro zone inflation last month prompted the ECB to cut interest rates to a record low 0.25% at its November meeting.
The yen found some support after Tuesday’s minutes of the BoJ’s October meeting showed some policymakers see a greater downside risk to the economy.
The BoJ noted that the economy is following the path to the bank’s 2% inflation target at a moderate pace. The members also said that there remains a high degree of uncertainty over the medium to long term inflation outlook.
The yen recovered from recent lows against the dollar, with USD/JPY sliding 0.26% to 101.41, after rising as high as 101.91 on Monday, the highest level since late May.
Elsewhere, the euro was higher against the dollar, with EUR/USD up 0.17% to 1.3539 from 1.3515 on Monday.
EUR/JPY dipped 0.03% to 137.38, holding below four-year highs of 137.94 struck on Monday.
The pair is likely to find support at 136.90 and near-term resistance at 138.00.
The euro shrugged off dovish remarks by European Central Bank board member Benoit Coeure, who said Tuesday that negative deposit rates are still a possibility.
Investors were turning their attention to preliminary euro zone inflation data, due out on Friday, amid expectations that the annual rate of inflation would rise to 0.8% in November, from October’s four year low of 0.7%.
The slowdown in euro zone inflation last month prompted the ECB to cut interest rates to a record low 0.25% at its November meeting.
The yen found some support after Tuesday’s minutes of the BoJ’s October meeting showed some policymakers see a greater downside risk to the economy.
The BoJ noted that the economy is following the path to the bank’s 2% inflation target at a moderate pace. The members also said that there remains a high degree of uncertainty over the medium to long term inflation outlook.
The yen recovered from recent lows against the dollar, with USD/JPY sliding 0.26% to 101.41, after rising as high as 101.91 on Monday, the highest level since late May.
Elsewhere, the euro was higher against the dollar, with EUR/USD up 0.17% to 1.3539 from 1.3515 on Monday.