Forexpros - The euro declined against the yen on Wednesday, as trade remained thin with U.S. markets closed for a holiday, while investors awaited the outcome of a European Central Bank policy meeting on Thursday.
EUR/JPY hit 100.23 during European afternoon trade, the session low; the pair subsequently consolidated at 100.26, falling 0.34%.
The pair was likely to find support at 99.45, the low of June 14 and resistance at 101.28, the high of July 2.
The ECB was widely expected to announce an interest rate cut to 0.75% from the current record low 1.00% to help bolster growth in the region, following a recent string of weak economic data.
The euro came under pressure earlier, after the final reading of the euro zone services purchasing managers’ index came in at 47.1 in June, slightly above the preliminary estimate of 46.8, but holding below the 50 level which separates contraction from growth for the fifth consecutive month.
Meanwhile, markets were also eyeing Friday’s U.S. nonfarm payrolls report, amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy, which has been hit by the ongoing crisis in the euro zone.
Elsewhere, the yen was steady against the U.S. dollar with USD/JPY easing up 0.04%, to hit 79.82.
Also Wednesday, official data showed that retail sales in the euro zone rose by a seasonally adjusted 0.6% in May, beating expectations for a 0.3% gain, but total sales for April were revised down to a 1.4% drop from a previously reported decline of 1%.
