Investing.com – The euro was down for the second consecutive day against the yen on Wednesday, hovering near a 3-month low, amid ongoing fears over the euro zone’s sovereign debt crisis.
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EUR/JPY hit 107.65 during European afternoon trade, a daily low; the pair subsequently consolidated at 107.78, dropping 0.25%.
The pair was likely to find support at 107.79, the low of September 14, and resistance at 109.50, Tuesday’s high.
Earlier in the day, European Central Bank Governing Council member Yves Mersch said that recent reforms of euro zone governance have not gone far enough to alleviate the currency bloc’s problems.
"The recent European proposals for reform of the economic governance of the euro area go in the right direction, but are not ambitious enough to ensure a healthy and efficient functioning of monetary union," Mr. Mersch said in a statement.
Mr. Mersch, who is also Governor of the Bank of Luxembourg, warned that euro zone countries need to more closely monitor and scrutinize each other’s monetary policies, while adding that more drastic measures should be taken against countries whose deficits exceed 3% of GDP, including “near-automatic sanctions”.
Meanwhile, the euro was up against the U.S. dollar, with EUR/USD climbing 0.17% to hit 1.3138.
On Tuesday, Japanese Finance Minister Yoshihiko Noda said recent movements in the yen have been "one-sided", indicating that Japan could again intervene in the foreign-exchange market.
.
EUR/JPY hit 107.65 during European afternoon trade, a daily low; the pair subsequently consolidated at 107.78, dropping 0.25%.
The pair was likely to find support at 107.79, the low of September 14, and resistance at 109.50, Tuesday’s high.
Earlier in the day, European Central Bank Governing Council member Yves Mersch said that recent reforms of euro zone governance have not gone far enough to alleviate the currency bloc’s problems.
"The recent European proposals for reform of the economic governance of the euro area go in the right direction, but are not ambitious enough to ensure a healthy and efficient functioning of monetary union," Mr. Mersch said in a statement.
Mr. Mersch, who is also Governor of the Bank of Luxembourg, warned that euro zone countries need to more closely monitor and scrutinize each other’s monetary policies, while adding that more drastic measures should be taken against countries whose deficits exceed 3% of GDP, including “near-automatic sanctions”.
Meanwhile, the euro was up against the U.S. dollar, with EUR/USD climbing 0.17% to hit 1.3138.
On Tuesday, Japanese Finance Minister Yoshihiko Noda said recent movements in the yen have been "one-sided", indicating that Japan could again intervene in the foreign-exchange market.