Forexpros – The euro declined against the yen on Tuesday, falling to a five-week low as concerns over the worsening sovereign debt crisis in the euro zone dampened demand for the single currency.
EUR/JPY hit 103.99 during European afternoon trade, the pair’s lowest since October 10; the pair subsequently consolidated at 104.22, shedding 0.81%.
The pair was likely to find support at 103.02, the low of September 30 and resistance at 105.97, the high of November 10.
The euro came under pressure earlier, after a rise in Italian and Spanish bond yields underscored the challenges facing European leaders as they continue to struggle to contain the region’s debt crisis.
Meanwhile, data showed that the ZEW index of German economic sentiment declined significantly more-than-expected in November, falling to a three-year low of minus 55.2, as political uncertainty in Greece and Italy weighed on the outlook for the region.
A separate report showed that gross domestic product in the euro zone increased by 0.2% during the third quarter, in line with expectations, following growth of 0.2% in the previous quarter.
Germany’s GDP rose in line with expectations in the third quarter, expanding 0.5%, from an upwardly revised 0.3% in the preceding quarter.
France’s GDP expanded by 0.4% on the quarter, having contracted by 0.1% in the previous three months.
Elsewhere, the yen was up against the U.S. dollar with USD/JPY declining 0.10%, to trade at 76.99.
Later in the day, the U.S. was to release official data on retail sales and producer price inflation.
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