By Cecile Lefort and Charlotte Greenfield
SYDNEY/WELLINGTON, Feb 10 (Reuters) - The Australian and New Zealand dollars crumbled against the yen on Wednesday as concerns about the health of global banks and sliding commodity prices sent investors to safe haven assets.
The yen, a favoured currency at times of heightened risk aversion, gained broadly as Japanese stocks fell and worries mounted about the debt of European banks.
The Aussie skidded 1 percent to 80.53 yen AUDJPY=R , and has now lost more than five yen in one week. The next major bear target was 79.17, a level last seen mid-2012.
The euro rose 0.5 percent to A$1.6048, not far from a four-month peak of A$1.6145 touched in the last session.
The Aussie fared a little better on the U.S. dollar but still eased AUD=D4 to $0.7048, not far from a low of $0.6973 touched on Tuesday. Breaking that level could open the way to retracement of a seven-year trough of $0.6827.
With Chinese financial markets shut this week for the Lunar New Year, the next focus is on Federal Reserve Chair Janet Yellen's testimony later in the session.
While Yellen is expected to defend the Fed's first rate hike in a decade and insist that further rises remain on track, any sign of a departure from such a stance would give risk assets a welcome breather.
The New Zealand dollar NZD=D4 fell to $0.6613 after hitting a low of $0.6564 overnight.
"Markets remain in the grip of 'fear' with the NZD relatively off the radar," ANZ analysts said in a research note.
The kiwi continued to edge down for the fifth day against safe haven currencies such as the euro EURNZD=R and the yen NZDJPY=R .
The New Zealand dollar would likely face resistance around the $0.6700 level, according to analysts.
New Zealand government bonds 0#NZTSY= eased, sending yields 2 basis points higher in the middle of the curve.
Australian government bond futures held near multi-month peaks, with the three-year bond contract YTTc1 steady at 98.280.
The 10-year contract YTCc1 was also unchanged at 97.5950, while the 20-year contract YXXc1 flat at 97.0650.