The euro is expected to take a firmer footing against the yen due to yen-selling flows linked to M&A deals by Japanese corporations.

The euro could test its upside above US$1.4300 on May 18 after recovering from a seven-week low of US$1.4048 reached earlier in the week.

"Although the euro is still vulnerable to downward pressure due to lingering debt problems in the euro-zone, we are watching whether it could break through its 50-day moving average of above US$1.43 in the near term," said Teppei Ino, a currency analyst at Bank of Tokyo-Mitsubishi UFJ.

A clear break beyond the 50-day MA, now at US$1.4325, could pave the way for the euro to head toward US$1.4500, he said.

Europe's top financial officials broke a taboo on May 17 and acknowledged for the first time that Greece may have to restructure its debt, a move that could stoke Europe's sovereign debt crisis.

Speaking on the sidelines of an EU finance ministers' meeting, Jean-Claude Juncker, chairman of the 17-country Eurogroup, said there was a need to move toward what he called a "soft restructuring" of Greek debt.

The euro rose 0.1 percent to US$1.4250 in early Asian trade and advanced 0.1 percent to 116.00 yen.