Investing.com - The euro extended gains against the yen on Monday, rallying to a nine-day high as hopes for a deal to contain debt contagion in the euro zone boosted demand for the single currency.
EUR/JPY hit 104.23 during European afternoon trade, the pair’s highest since November 15; the pair subsequently consolidated at 104.37, rising 1.42%.
The pair was likely to find support at 102.69, the low of November 24 and resistance at 105.55, the high of November 15.
The single currency found support as European Union leaders were negotiating the details of a fiscal pact to halt the spread of the region’s debt crisis. The pact would make budget discipline legally binding and enforceable by European authorities and would give the European Central Bank more scope to undertake large scale bond purchases.
Earlier Monday, Belgium successfully auctioned EUR2 billion of 10-year bonds in the country’s first debt auction since ratings agency Standard & Poor's downgraded the country’s rating by one notch on Friday.
Meanwhile, the Organization for Economic Cooperation and Development lowered its growth forecasts for the world's largest economies, and said the euro zone has fallen into recession.
The OCDE also urged the ECB to act more decisively to prevent the euro-zone sovereign debt crisis from deepening further.
Elsewhere, the governor of the Bank of Japan warned earlier that the outlook for the country's economy remained clouded by the ongoing debt crisis in the euro zone and the strong yen, signaling the central bank's readiness to boost monetary stimulus.
The yen was also lower against the U.S. dollar with USD/JPY rising 0.31%, to hit 77.97.
Also Monday, the GfK group said its index of German consumer climate rose unexpectedly for December, as improved employment figures and higher incomes supported the outlook.
Later in the day, the U.S. was to release official data on new home sales.
EUR/JPY hit 104.23 during European afternoon trade, the pair’s highest since November 15; the pair subsequently consolidated at 104.37, rising 1.42%.
The pair was likely to find support at 102.69, the low of November 24 and resistance at 105.55, the high of November 15.
The single currency found support as European Union leaders were negotiating the details of a fiscal pact to halt the spread of the region’s debt crisis. The pact would make budget discipline legally binding and enforceable by European authorities and would give the European Central Bank more scope to undertake large scale bond purchases.
Earlier Monday, Belgium successfully auctioned EUR2 billion of 10-year bonds in the country’s first debt auction since ratings agency Standard & Poor's downgraded the country’s rating by one notch on Friday.
Meanwhile, the Organization for Economic Cooperation and Development lowered its growth forecasts for the world's largest economies, and said the euro zone has fallen into recession.
The OCDE also urged the ECB to act more decisively to prevent the euro-zone sovereign debt crisis from deepening further.
Elsewhere, the governor of the Bank of Japan warned earlier that the outlook for the country's economy remained clouded by the ongoing debt crisis in the euro zone and the strong yen, signaling the central bank's readiness to boost monetary stimulus.
The yen was also lower against the U.S. dollar with USD/JPY rising 0.31%, to hit 77.97.
Also Monday, the GfK group said its index of German consumer climate rose unexpectedly for December, as improved employment figures and higher incomes supported the outlook.
Later in the day, the U.S. was to release official data on new home sales.