Yen dips after ECB calms markets

The safe-haven yen fell from multi-week peaks versus major currencies today after an official from the European Central Bank hinted that more bond-buying was a possibility, although an approaching Italian debt sale posed additional risks to jittery markets, reports Reuters.

The Australian dollar climbed by over half a per cent on the dollar and the Japanese currency after unexpectedly positive local employment figures calmed worries that the Australian economy may suffer from slower growth globally.

Traders took profits on the yen, which gained during the previous session with riskier assets still pressurised as the debt woes in the eurozone continued and Spanish bond yields nearing a four-month high and the important six per cent level.

The yen dropped by 0.1 per cent, helping the greenback climb to 80.90 yen after a six-week low of 80.57. Meanwhile, the euro went up to 106.30 yen from a trough on Wednesday of 105.45. The Japanese unit was sold by macro and model funds, according to traders.

Euro/yen was set to make a noteworthy move on the charts, with the single currency trapped above support of the 200-day moving average of 105.86 yen and resistance on top of the Ichimoku cloud standing at 106.29, with 106.41, the 55-day moving average, posing more resistance.