Euro backs off 15-year peak against yen

Euro fell in European trade on Wednesday against a basket of major rivals, extending losses for the second day against yen and backing off 15-year peak on active profit-taking. 

Euro is pressured by recent Euro zone data which indicated the economy is falling into recession faster than expected.

EUR/JPY

EUR/JPY fell 0.2% to 158.40, with a session-high at 158.93, after losing 0.65% yesterday, the first loss in four days, and the largest since October 3 on active profit-taking after marking 15-year highs at 159.92. 

Recession

Recent European data showed the manufacturing and services sectors shrank in October, flaming concerns of recession during the fourth quarter.

The European economy is undergoing one of its worst periods of contraction as spending wanes and the Chinese economy weakens.

Thus the European Central Banks has strongly hinted last September that no more interest rate hikes will be announced.

The 160 Yen Barrier

The 160 yen barrier continues to hold ground, with Japanese authorities likely intervening if threatened to underpin the currency. 

Japanese authorities indicated it'll stand on the sidelines unless yen weakens too excessively against its European or US rivals.