Investing.com - The euro was higher against the yen on Tuesday, but gains were limited by ongoing concerns over the worsening of Spain’s financial crisis while last week’s easing move by the Bank of Japan lent support to the yen.
EUR/JPY hit 106.03 during European afternoon trade, the daily high; the pair subsequently consolidated at 105.96, adding 0.27%.
The pair was likely to find support at 105.27, the low of April 17 and resistance at 106.68, the high of April 11.
Trading remained light as markets in France, Germany, Italy and Switzerland were closed due to national holidays.
Sentiment strengthened earlier after official data showed that an index of Chinese manufacturing activity rose to a 13-month high of 53.3 in April from 53.1 the previous month, but the data came in slightly below forecasts for a reading of 53.6.
But the euro’s gains were limited by ongoing concerns over the outlook for the single currency bloc, after official data on Monday confirming that Spain’s economy entered a recession in the first quarter sparked fresh fears that austerity measures could impair economic growth in the region.
Market participants were also jittery ahead of weekend elections in Greece and France and the European Central Bank’s policy meeting on Thursday.
Meanwhile, the yen remained supported after new easing measures announced by the BoJ fell short of some market expectations.
Last week, the bank said it will increase the size of its asset purchase fund by JPY5 trillion, while a program to provide loans to banks was cut back by JPY5 trillion. Economists had expected an increase of as much JPY10 trillion to the nation’s stimulus program.
The yen was steady against the U.S. dollar with USD/JPY inching down 0.01%, to hit 79.83.
Later in the day, the U.S. was to release a closely watched report by Institute for Supply Management on manufacturing activity.
EUR/JPY hit 106.03 during European afternoon trade, the daily high; the pair subsequently consolidated at 105.96, adding 0.27%.
The pair was likely to find support at 105.27, the low of April 17 and resistance at 106.68, the high of April 11.
Trading remained light as markets in France, Germany, Italy and Switzerland were closed due to national holidays.
Sentiment strengthened earlier after official data showed that an index of Chinese manufacturing activity rose to a 13-month high of 53.3 in April from 53.1 the previous month, but the data came in slightly below forecasts for a reading of 53.6.
But the euro’s gains were limited by ongoing concerns over the outlook for the single currency bloc, after official data on Monday confirming that Spain’s economy entered a recession in the first quarter sparked fresh fears that austerity measures could impair economic growth in the region.
Market participants were also jittery ahead of weekend elections in Greece and France and the European Central Bank’s policy meeting on Thursday.
Meanwhile, the yen remained supported after new easing measures announced by the BoJ fell short of some market expectations.
Last week, the bank said it will increase the size of its asset purchase fund by JPY5 trillion, while a program to provide loans to banks was cut back by JPY5 trillion. Economists had expected an increase of as much JPY10 trillion to the nation’s stimulus program.
The yen was steady against the U.S. dollar with USD/JPY inching down 0.01%, to hit 79.83.
Later in the day, the U.S. was to release a closely watched report by Institute for Supply Management on manufacturing activity.