Forex - EUR/JPY falls on weak European industrial output data

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Investing.com - The euro weakened against the yen on Wednesday as investors avoided the single currency upon learning that eurozone industrial output figures missed expectations.

The yen saw some support on sentiments the currency has weakened enough in recent months due to Prime Minister Shinzo Abe's calls for looser monetary policies.

In U.S. trading on Wednesday, EUR/JPY was down 0.61% at 124.45, up from a low of 124.19 and off a high of 125.22.

The pair sought to test support at 124.39, Tuesday's low, and resistance at 126.04, Monday's high.

Official data released earlier revealed that the eurozone's industrial output fell 0.4% in January, outpacing market calls for a 0.1% decline.

Meanwhile in Italy, the country's Treasury sold EUR3.32 billion in three-year government bonds at an average yield of 2.48%, up from 2.30% at a similar auction last month, which weakened the euro.

The auction was the first since Fitch Ratings slapped a one-notch downgrade on Italy earlier this month.

The yen has depreciated by close to 8% in 2013 in wake of Abe's calls for looser monetary policies.

New leadership at the Bank of Japan has also weakened the yen, though traders snapped up nicely priced positions in the currency on Wednesday after viewing it as an attractive buy and sent it gaining against the euro.

The euro, meanwhile, was down against the pound and down against the Canadian dollar, with EUR/GBP trading down 0.70% at 0.8685 and EUR/CAD trading down 0.35% at 1.3321.

On Thursday, the European Central Bank will publish its monthly bulletin, which gauges current and future economic conditions from the bank's viewpoint. Meanwhile, European Union leaders are to hold the first day of a two-day economic summit.








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