Forex - EUR/JPY gains as bottom fishers look past German data

Forex - EUR/JPY gains as bottom fishers look past German data By Forexpros | Forex News | Sep 25, 2012 01:58AM GMT | Add a Comment ForexprosArticle Forexpros - The euro rose against the yen on Tuesday as investors viewed the single currency as oversold versus safe-haven currencies. Weak German business sentiment figures caught investors off guard earlier, sparking a euro selloff. In Asian trading on Tuesday, EUR/JPY hit 100.73, up 0.06%, up from a low of 100.71 and off a high of 100.83. The pair sought to test support at 100.36, Monday's low, and resistance at 101.41, Monday's high. The euro dropped in U.S. and European session earlier after the Ifo institute said its business climate index for Germany fell to its lowest level since March 2010, stoking concerns that the European debt crisis is fraying nerves in Europe's largest economy. The Ifo index fell to 101.4 in September from 102.3 in August, the fifth consecutive monthly decline and well below expectations for a 102.5 reading. Ongoing uncertainty as to whether Spain will seek a bailout prompted investors to seek safety in the yen and greenback as well. On Thursday Madrid will unveil a draft budget for next year and announce structural reforms, while the results of the country's bank stress tests are due on Friday. Elsewhere, the Moody’s ratings agency should wrap up a ratings review on Spain later this week. Spain’s economy minister said the country would not rush to seek external financial aid, though press reports have said the country is quietly drawing up blueprints to formally seek assistance. Disagreements between France and Germany over centralizing banking supervision pressured the euro against the safe-haven yen as well. Germany and France are at odds over a timeframe to centralize banking supervision, with Germany hoping to delay giving the European Central Bank more power to oversee the eurozone's financial institutions. By Tuesday, however, investors felt the single currency was oversold and snapped up nicely priced euro positions. The euro, meanwhile, was up against the pound and up against the Canadian dollar, with EUR/GBP trading up 0.04% at 0.7975 and EUR/CAD trading up 0.02% at 1.2659. Later Tuesday, European Central Bank President Mario Draghi is due to speak, while Germany will release data on consumer climate, an important indicator of consumer spending.