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Takako Masai, general manager of the markets subgroup at Shinsei Bank, told Bloomberg that the 17-nation currency could be set to improve against the Japanese yen.
It rose 0.2 per cent to 105.71 at 09:19 local time in Tokyo today (October 18th) after reaching a high of 107.68 yen yesterday.
Mr Masai stated: "It's natural the euro faces a correctional slide after a bounce from below 101 yen."
He added that the currency has "been oversold over the long term", a fact that he claimed may mean the euro finds more buyers.
The expert forecast that the euro needs to reach the 109-yen level in order to reverse the long-term downturn in the currency.
Earlier this month, the euro fell to a decade low against the Japanese currency, falling to 100.76 yen on October 3rd.
Posted by Clive Arneil
