EUR/JPY received support after the release of moderate German PMI data on Tuesday. ECB Vice President Luis de Guindos announced that the central bank intends to reduce interest rates in June. The Japanese Yen faces obstacles as the BoJindicatedno rush to implement monetary policy measures. The Euro gains ground on mixed Purchasing Managers Index data from Germany and the Eurozone released on Tuesday. In April, the initial Eurozone Manufacturing PMI dipped to 45.
The Japanese Yen is encountering hurdles stemming from the widening yield gap between Japan and numerous other key nations. This trend prompts traders to borrow JPY and allocate funds to higher-yielding assets abroad. The Bank of Japan signaled that it is taking a cautious approach regarding policy normalization, indicating no rush to implement such measures.