The Japanese yen slipped against its major counterparts in the European session on Tuesday amid safe-haven status, as a rally in oil prices on the prospect of more sanctions against Russia lifted risk sentiment.
The United States and Europe signaled more sanctions on Russia for committing “war crimes” in Ukraine.
The European Union will probably adopt a new round of sanctions against Russia on Wednesday, France’s European Affairs Minister Clement Beaune said.
President Volodymyr Zelensky will speak at a meeting of United Nations Security Council, which is expected to be dominated by civilian atrocities in Ukraine.
Earlier in the day, Bank of Japan Governor Haruhiko Kuroda cautioned against the recent depreciation of the yen against the U.S. dollar, saying that currency movements are “somewhat rapid” and should be stable.
The latest survey from Jibun Bank showed that Japan services sector continued to contract in March, albeit at a slower rate, with a services PMI score of 49.4.
That’s up from 44.2 in February, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
The yen dropped to 8-day lows of 93.90 against the aussie and 86.09 against the kiwi, off its prior highs of 92.26 and 85.02, respectively. The yen is poised to challenge support around 96.00 against the aussie and 89.00 against the kiwi.
The yen weakened to a 1-week low of 98.74 against the loonie and a 4-day low of 123.00 against the greenback, pulling back from its previous highs of 97.99 and 122.37, respectively. The next possible support for the yen is seen around 100.00 against the loonie and 124.00 against the greenback.
Reversing from its early highs of 160.50 against the pound and 132.18 against the franc, the yen depreciated to a 1-week low of 161.50 and a 4-day low of 132.85, respectively. The yen is seen finding support around 164.00 against the pound and 134.00 against the franc.
The yen edged down to 135.12 against the euro, after climbing to an 8-day high of 134.29 in previous deals. On the downside, 137.00 is possibly seen as the next support level for the currency.
Looking ahead, U.S. and Canadian trade data for February and ISM non-manufacturing PMI for March will be released in the New York session.