Yen Falls As European Shares Traded Higher

(RTTNews) - The Japanese yen weakened against other major currencies in the European session on Wednesday amid increased risk-off mood by the investors, as the Iran-Israel ceasefire, announced by U.S. President Donald Trump appears to hold in the Middle East, and Federal Reserve Chair Jerome Powell said "many paths are possible" for monetary policy, opening the door to an earlier rate cut.

The truce between Israel and Iran continues to hold, with Trump's envoy, Steve Witkoff, telling Fox News that the U.S. was hopeful about a long-term peace deal with Iran.

EU High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission, Kaja Kallas, described the ceasefire announcement as "good news", noting that this was the moment that all parties related to the matter "return to the negotiating table".

Focus now shifts to Gaza where ongoing violence continues with staggering casualties.

On the economic front, U.S. new homes sales data for May, any developments around U.S.-EU trade talks and Fed Chair Powell's second day of testimony on Capitol Hill may garner attention later in the day as the July 9 end to the 90-day tariff pause looms.

In the European trading today, the yen fell to nearly a 6-month low of 198.25 against the Pound and a 2-day low of 180.68 against the Swiss franc, from early highs of 197.05 and 179.73, respectively. If the yen extends its downtrend, it is likely to find support around 200.00 against the pound and 182.00 against the franc.

Against the euro and the U.S. dollar, the yen dropped to 168.97 and 144.61 from early highs of 170.00 and 149.00, respectively. On the downside, 170.00 against the euro and 149.00 against the greenback are seen as the next support levels for the yen.

Against the Australia and the New Zealand dollars, the yen slid to a 2-day low of 94.64 and 87.72 from early highs of 94.02 and 87.07, respectively. The next possible downside target for the yen is seen around 96.00 against the aussie and 89.00 against the kiwi.

Moving away from an early near 2-week high of 105.37 against the Canadian dollar, the yen edged down to 106.12. The yen may test support around the 108.00 region.

Looking ahead, Swiss National Bank's quarterly bulletin, U.S. new home sales and U.S. EIA crude oil data are slated for release in the New York session.