• EUR/JPY declines 0.33% to 161.65 as market uncertainty favors the Japanese Yen

• Political developments in Washington create risk-off sentiment across markets

• Upcoming Eurozone PMI data could can you buy meme coins on coinbaseinfluence the pair's near-term direction

The EUR/JPY currency pair shows notable weakness in Tuesday's trading session, with the cross retreating toward 161.65 as European markets open. This movement reflects growing investor preference for traditional safe-haven assets amid renewed trade tensions between major economies.

Market participants appear increasingly cautious following recent political developments in Washington. The potential for escalated trade measures and public criticism of monetary policy officials has created uncertainty that typically benefits currencies like the Japanese Yen during periods of market stress.

Monetary policy expectations continue to influence the currency pair's dynamics. Recent commentary from Bank of Japan officials suggests potential for additional rate adjustments in coming months, which contrasts with the European Central Bank's recent decision to ease policy. This divergence in central bank approaches creates fundamental support for the Yen against the Euro.

Economic data releases scheduled for Wednesday could provide fresh direction for the currency pair. The preliminary Purchasing Managers' Index readings from Germany and the broader Eurozone will offer insights into regional economic health. Stronger-than-expected results might temporarily stem the Euro's decline, while disappointing figures could reinforce the current downward trend.

Technical factors also merit consideration, as the pair approaches potential support levels that have previously attracted buying interest. Market participants will monitor whether these levels hold or if continued risk aversion pushes the cross lower in coming sessions.