Forexpros – The euro rose against the yen on Thursday, bucking its weakening trend against other currencies and firming on fears Japan will report a trade deficit.
In Asian trading on Thursday, EUR/JPY hit 106.80, up 0.16%, up from a low of 106.54 and off a high of 106.84.
The pair sought to test support at 104.63, the low of April 16, and resistance at 109.70, the high of April 4.
The euro remained on edge against most major currencies after taking a hit earlier on fears that Spanish financing concerns could send shockwaves throughout Europe.
Earlier in the week, the Spanish government sold at auction 12-month and 18-month bills, and while yields were high at 2.623%, the country did raise over EUR3 billion, above target.
However, the closely-watched 2-year and 10-year auction on Thursday will shed light on market confidence in Spain’s ability to tackle deficits amid a recession and steer its economy to better days.
The euro traded a little jumpy against other currencies except for the yen, which was weaker on fears Japan is set to report a trade deficit later in the session, which would prompt authorities to take step and weaken the unit.
The euro, meanwhile, was down against the pound and down against the Canadian dollar, with EUR/GBP down 0.06% at 0.8186 and EUR/CAD down 0.10% and trading at 1.2996.
Later Thursday, Japan is due to announce trade balance figures while in Europe, all eyes will be on Spain and the results of its bond auction.
In Germany, the German Ifo Business Climate Index will be released, rating the country’s business climate and expectations for the next six months.
German producer price data will also be released.
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