Investing.com - The euro was sharply lower against the yen on Monday, as demand for the shared currency was hit after weak euro zone employment data sparked new fears that the region is slipping into a recession.
EUR/JPY hit 109.22 during European afternoon data, the daily low; the pair subsequently consolidated at 109.25, tumbling 1.18%.
The pair was likely to find support at 108.37, the low of March 14 and resistance at 111.24, the high of March 27.
The euro came under pressure after official data showed earlier that the unemployment rate in the region ticked up to a record high of 10.8% in February from 10.7% the previous month, broadly in line with expectations.
On Friday, euro zone finance ministers agreed to strengthen the bloc’s debt firewall, but fears remained over whether the measures would be enough to prevent contagion to Spain and Italy.
But market sentiment remained supported after official data on Sunday showed that manufacturing activity in China jumped to an 11-month high in March, easing concerns over a slowdown in the world’s second largest economy.
The yen weakened earlier after official data showed that Japan’s Tankan manufacturing index remained unchanged at minus 4 in the last quarter, disappointing expectations for a rise to minus 1.
The data fueled new speculations that the Bank of Japan may conduct additional monetary easing in order to boost the economy.
The yen was also higher against the U.S. dollar with USD/JPY shedding 0.77, to hit 82.20.
Later Monday, the Institute of Supply Management was to release a report on U.S. manufacturing activity.
EUR/JPY hit 109.22 during European afternoon data, the daily low; the pair subsequently consolidated at 109.25, tumbling 1.18%.
The pair was likely to find support at 108.37, the low of March 14 and resistance at 111.24, the high of March 27.
The euro came under pressure after official data showed earlier that the unemployment rate in the region ticked up to a record high of 10.8% in February from 10.7% the previous month, broadly in line with expectations.
On Friday, euro zone finance ministers agreed to strengthen the bloc’s debt firewall, but fears remained over whether the measures would be enough to prevent contagion to Spain and Italy.
But market sentiment remained supported after official data on Sunday showed that manufacturing activity in China jumped to an 11-month high in March, easing concerns over a slowdown in the world’s second largest economy.
The yen weakened earlier after official data showed that Japan’s Tankan manufacturing index remained unchanged at minus 4 in the last quarter, disappointing expectations for a rise to minus 1.
The data fueled new speculations that the Bank of Japan may conduct additional monetary easing in order to boost the economy.
The yen was also higher against the U.S. dollar with USD/JPY shedding 0.77, to hit 82.20.
Later Monday, the Institute of Supply Management was to release a report on U.S. manufacturing activity.