The yen hit a 9-month high against the euro and rose sharply against other major currencies on Tuesday, amid increased risk aversion sparked by China’s increase in required reserves for some banks.
EUR/JPY tumbled to 126.22, its lowest rate since April 28 last year. Support is likely to be found at around 124.37, the low of that date. The pair is likely to find resistance at around 128.35, the Asian trading session high.
The yen also shot up against the U.S. dollar and pound, hitting 5-week highs against both currencies. GBP/JPY fell to a 144.24, its lowest rate since Dec. 18, and USD/JPY fell to 89.55, its lowest rate since also since Dec. 18.
The Japanese currency’s advances came after the Bank of Japan earlier Tuesday maintained its overall assessment that economic improvement would be “moderate.”