The euro fell to a seven-day low against the Japanese yen on Thursday, as concerns over sovereign debt crisis in eurozone got renewed after German finance minister Wolfgang Schaeuble said that Greece may need to restructure its debt.

EUR/JPY tumbled to 119.63 during European trading, its lowest since April 5, before consolidating at 119.65. The pair is likely to find support at low of 119.16 reached on April 4 and resistance at Wednesday’s high of 122.15.

German newspapers report that EU experts estimate that Greece needs to clear away 40 percent to 50 percent of its debt, while German Finance Minister Schaeuble indicated that he is awaiting detailed analysis of Greek debt sustainability, said a note from RBC Capital Markets on Thursday.

The European Central Bank (ECB) Governing Council Member Yves Mersch said that he can’t exclude the possibility of a Eurozone member going insolvent.

“It’s not ruled out, but if you put it on the table as part of the solution right from the start you’re telling the markets they have a higher risk of investing in Eurozone bonds than in debt from other regions” Mersch said.

The single currency also traded lower against the Swiss france, with EUR/CHF hitting 1.2857, losing 0.68 percent. Against the greenback, the euro hit a session's low of around $1.4390.

“With inflation data showing signs of moderation, IMF officials cautioning the ECB over premature removal of monetary accommodation, and the Fed apparently committed to zero interest rates for the foreseeable future, the EUR is looking increasingly overbought. Unless the EUR can reach higher highs by Friday morning, profit taking ahead of the weekend is the greater likelihood,” said a note from BNY Mellon on Thursday.

Analysts expect the single currency to get support from expectations over another rate hike by the ECB this year.

The ECB on Thursday maintained its hawkish stance, saying that it sees upside risks to price stability and will continue to monitor inflationary pressures very closely.

It is essential that the recent price developments do not give rise to broad-based inflationary pressures over the medium term, the ECB said.

ECB Governing Council member Mario Draghi said that monetary policy remains “accommodative” even after the ECB raised its benchmark rate last week for the first time in almost three years.