Investing.com - The euro clung to gains against the yen on Tuesday, but concerns over Portugal’s debt load threatened to overshadow hopes for an agreement on a debt swap deal for Greece as soon as this week.
EUR/JPY hit 100.89 during European afternoon trade, the session high; the pair subsequently consolidated at 100.51, up 0.17% on the day.
The pair was likely to find support at 99.98, Monday’s low and a one-week low and resistance at 100.87, the session high.
Investors remained wary amid uncertainty over Portugal’s debt burden, as the yield on the country’s 10-year government bonds remained close to Monday’s euro-era highs at 16%, fuelling concerns that Lisbon may need a debt restructuring deal.
The euro had been pushed higher earlier in the session after Greek Prime Minister Lucas Papademos said negotiators had made "significant progress" in talks aimed at reaching a debt restructuring plan and aimed to have a definitive agreement by the end of this week.
The euro was also supported after European Union leaders agreed on a fiscal union pact and signed off on the details of a EUR500 billion permanent bailout fund for the euro zone that will come into force in July.
The euro also held gains against the U.S. dollar, with EUR/USD up 0.22% to trade at 1.3171.
Earlier in the day, Japanese Finance Minister Jun Azumi warned that he will take "decisive steps" if speculators push the yen up too sharply after Japan’s currency hit a three-month high against the U.S. dollar.
EUR/JPY hit 100.89 during European afternoon trade, the session high; the pair subsequently consolidated at 100.51, up 0.17% on the day.
The pair was likely to find support at 99.98, Monday’s low and a one-week low and resistance at 100.87, the session high.
Investors remained wary amid uncertainty over Portugal’s debt burden, as the yield on the country’s 10-year government bonds remained close to Monday’s euro-era highs at 16%, fuelling concerns that Lisbon may need a debt restructuring deal.
The euro had been pushed higher earlier in the session after Greek Prime Minister Lucas Papademos said negotiators had made "significant progress" in talks aimed at reaching a debt restructuring plan and aimed to have a definitive agreement by the end of this week.
The euro was also supported after European Union leaders agreed on a fiscal union pact and signed off on the details of a EUR500 billion permanent bailout fund for the euro zone that will come into force in July.
The euro also held gains against the U.S. dollar, with EUR/USD up 0.22% to trade at 1.3171.
Earlier in the day, Japanese Finance Minister Jun Azumi warned that he will take "decisive steps" if speculators push the yen up too sharply after Japan’s currency hit a three-month high against the U.S. dollar.