The Euro recorded a more than 1% rise against the Yen to record a new 11-month high. This is speculated to be caused by expectations of an ECB interest rates hike only one day before this long awaited meeting takes place. Minutes ago the EURUSD high was traded as high as 122.60 while during the last hour it has been demonstrating a downwards movement, possibly a correction. The Interest rate hikes have been helping the Euro make gains against the Yen while at the same time the Japanese Yen is aiming to retain its low interest rates despite the tsunami and earthquake devastation.
The Japanese Yen also recorded a new six-month low against the U.S. dollar. The USDJPY pair reached as high as 85.52 and is very close to breaking a very strong resistance level of a previous high at 85.80. Over the last weeks low interest baring currencies have been experiencing a decline in their values since a decline of market volatility encouraged talks of reviving tactics involving the selling of low yielding currencies aiming to invest to ones bearing higher interest rates. The USDJPY is currently traded at 85.33