LangkahBerita.blogspot.com --The euro weakened against the Japanese yen on Tuesday after soft retail sales and German factory data hit the wire in Europe earlier coupled with sentiments that expectations for more aggressive Bank of Japan easing measures have now been priced into trading strategies.
In U.S. trading on Tuesday, EUR/JPY hit 114.05, down 0.95% and up from a low of 113.64 and off a high of 115.23.
The pair sought to test support at 113.21, the low from Dec. 30, and resistance at 115.23, the earlier high.
The euro weakened against most major currencies after economic indicators disappointed earlier.
Eurozone retail sales increased 0.1% in November, according to Eurostat, the European Union's statistics office, falling short of market expectations for a 0.3% rise.
The single currency also softened after official data revealed that the unemployment rate in the currency bloc hit a record high of 11.8% in November, in line with market expectations and up from 11.7% in October, which further quelled appetite for risk.
Elsewhere in Germany, the government reported that factory orders fell 1.8% in November, outpacing market expectations for a 1.4% decline thanks in part to slumping overseas demand for the country's goods and services.
Disappointing data offset news that the European Stability Mechanism, the currency's zone's permanent bailout fund, sold EUR1.92 billion in short-term debt earlier Tuesday.
Japanese Finance Minister Taro Aso said his government would buy euro-denominated debt issued by the ESM to help prop up the economy in Europe, a key export market, though investors largely avoided the euro.
Meanwhile, the yen saw demand on sentiment that the currency has weakened enough on widespread sentiments the Bank of Japan will engage in more aggressive monetary stimulus measures.
Market chatter that credit ratings agencies may downgrade France kept the euro in negative territory against safe-harbor currencies such as the yen even though Paris dismissed such talk.
Elsewhere, the euro was up against the pound and up against the Canadian dollar, with EUR/GBP trading up 0.12% at 0.8148 and EUR/CAD trading down 0.11% at 1.2916.
On Wednesday, Germany is unveil government data on industrial production, a leading indicator of economic health.
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