EUR/JPY rises up to its highest ever recorded level of 171.60 before retreating.
The pair falls over 1.0% after making its record high, possibly as a result of intervention by the Japanese authorities.
Eurozone inflation data for Germany and Spain shows price stickiness, potentially providing support for the Euro.
EUR/JPY rose to a new all-time high of 171.60 early on Monday before collapsing and retreating over a percentage point, due to direct intervention by the Japanese Ministry of Finance (MOF) to prop up the Japanese Yen (JPY), it was rumored.
The EUR/JPY beat its previous record high of 169.97 set in 2008, in the early hours of Monday morning, however, it swiftly began to decline thereafter, reaching 165.64 by the time Europe was arriving to work at 07:00 GMT. Since then it has recovered a little, rising back above 167.00 on the back of firm inflation data from Germany and Spain.
The decline has been put down to rumors of a massive currency intervention by the Japanese authorities. It is possible the move came given the countless verbal warnings from the Japanese Minister of Finance Shun’ichi Suzuki over recent weeks, in which he repeated he was watching currency moves carefully and would intervene if necessary.
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