Forex Pros – The euro rallied to a three-day high against the broadly weaker yen on Wednesday, as stronger risk sentiment prompted investors to seek out higher yielding currencies.
EUR/JPY hit 120.18 during European morning trade, the pair’s highest since April 15; the pair subsequently consolidated at 120.06, surging 1.43%.
The pair was likely to find support at 117.08, Tuesday’s low and resistance at 121.46, the high of April 15.
Earlier in the day, government data showed that Japan recorded a smaller-than-expected trade surplus in March and exports fell more than expected year-on-year, due to disruptions following the March 11 earthquake and tsunami.
Japan’s Finance Ministry said overseas shipments declined 2.2% from a year earlier, the first drop since November 2009.
The fall was led by vehicle exports, which contracted 27.8%, the ministry said, after Japan’s leading automakers were forced to halt production amid broken supply chains and power shortages.
Japan’s trade surplus fell to JPY196.5 billion in March, less than the forecast JPY645.40 billion surplus.
The euro was also higher against the Swiss franc, with EUR/CHF gaining 0.47% to hit 1.2958.
Also Wednesday, official data showed that German producer prices rose less-than-expected in March.
ForexPros.com
