The EUR/JPY currency pair has gained traction, recovering from a previous session’s losses of over 0.50%. Currently, it trades around 162.40 during European hours on Tuesday. The upward movement of this pair occurs as the Japanese Yen (JPY) weakens due to reduced demand for traditional safe-haven assets amidst renewed optimism stemming from US-China trade relations. Despite the short-term gains, traders must remain cautious, considering potential downside risks stemming from upcoming European Central Bank announcements. As the market evolves, monitoring both the EUR and JPY’s performances will be crucial for currency traders. Investors should adapt their strategies accordingly in response to emerging trends and shifts in market sentiment that could influence the EUR/JPY dynamics.