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Forex - EUR/JPY pulls away from 4-day high after Juncker remarks

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Forex Pros - The euro trimmed gains against the yen on Tuesday, easing off a four-day high after a senior European finance official acknowledged that Greece may have to restructure its debts.

EUR/JPY pulled back from 116.22, the pair's highest since May 11 to hit 115.43 during European afternoon trade, still up 0.95% on the day.

The pair was likely to find support at 113.39, Monday's low and a two-month low and resistance at 116.88, the high of May 11.

Earlier in the day, the head of the euro zone's finance ministers, Jean-Claude Juncker, said there was a need to move towards what he called a "soft restructuring" of Greek debt.

On Monday, European Union finance ministers endorsed a EUR78 billion bailout for Portugal and for the first time floated the idea of talks with bondholders over extending Greece's debt-repayment schedule.

Meanwhile, the yen weaken broadly amid speculation that two major Japanese firms, Takeda and Toshiba, were set to buy companies overseas, requiring them to buy large quantities of foreign currencies.

The euro also pared gains against the Swiss franc, with EUR/CHF up 0.17% to hit 1.2594.

Also Tuesday, Greece and Spain both carried out successful auctions of Treasury bills but the cost of insuring Greek debt against default rose.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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