The pair is likely to trade in a limited range today in Asia after press reports said that Germany had accepted Japan's stance on the FX market.
A spokesman for the German finance ministry reportedly said that the euro-yen could stay in reasonable range after Japan's vice finance minister Takehiko Nakao said the yen is still in a correction process from its one-sided rise.
Riskier currencies may draw some demand, weakening the appetite both for the dollar and yen after the U.S. House of Representatives voted to pass a temporary fix to the debt ceiling, which spurred equity buying. The Standard & Poor's 500 Index rose for sixth straight day, up 0.13% on Wednesday.
Meantime, the FX market will focus on the release this week of Japanese economic data, including trade data due Thursday and CPI on Friday. Japan is expected to have posted a record trade deficit of Y6.82 trillion in calendar 2012, the second straight year of shortfalls, according to MNI survey of economists. The range on Wednesday. was 88.05 to 88.91.
Market News International