Forex Pros – The euro tumbled to a two day low against the yen on Monday as the market reassessed expectations of an interest rate hike by the European Central Bank and amid uncertainty ahead of a meeting of European finance ministers. EUR/JPY hit 109.58 during European early afternoon trade, the pair’s lowest since Thursday; the pair subsequently consolidated at 109.83, tumbling 1.01%. The pair was likely to find support at 108.67, Thursday’s low and resistance at 110.93, the day’s high. European finance ministers were to meet in Brussels later Monday to discuss an increase in the effective lending capacity of the euro zone’s rescue fund, although a final decision may only be made at a European Council meeting in early February. The single currency also came under pressure following remarks by European Central Bank governing council member Athanasios Orphanides, who said the market's reaction to the ECB's statement on inflation last week was exaggerated. Elsewhere Monday, official data showed that Japan's Consumer Confidence Survey index fell to 40.1 in December from 40.4 in November, posting the sixth consecutive monthly drop. The euro was also down against the U.S. dollar, with EUR/USD shedding 0.54% to hit 1.3315. Also Monday, markets in the U.S. were to remain closed for Martin Luther King Day.

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