EUR/JPY trims losses near 172.50 after report Japan PM Ishiba to resign

• EUR/JPY trades on a positive note near 172.40 in Wednesday's Asian session. 
• Japan's Ishiba is reported to step down by the end of August, weighing on the Japanese Yen. 
• The ECB is expected to hold rates at the July meeting on Thursday. 

The EUR/JPY cross pares losses to around 172.40 during the Asian trading hours on Wednesday. The Japanese Yen (JPY) weakens against the Euro (EUR) after the report that Japanese Prime Minister Shigeru Ishiba is to step down. 

On Wednesday, Japanese Prime Minister Shigeru Ishiba is reported to resign by the end of August. This follows the defeat of his ruling Liberal Democratic Party (LDP) in the upper house in Sunday's election. The Japanese Yen faces some selling pressure following these headlines. 

On the other hand, US President Donald Trump said the United States (US) has agreed to a trade deal with Japan. This, in turn, might help limit the JPY's losses. Trump on Wednesday announced a "massive" deal with Japan that includes "reciprocal" tariffs of 15% on the country's exports to the US. Trump added that Japan will invest $550 billion into the US and will open their country to trade, including cars and trucks, rice and certain other agricultural products, and other things."

Traders await the European Central Bank (ECB) interest rate decision on Thursday, with no change in rates expected. After eight quarter-point cuts that brought the deposit rate to 2.0%, ECB President Christine Lagarde said last month that the easing cycle is coming to an end. ECB policymakers believe they are well-positioned to deal with what comes next. 

Traders will also closely monitor the ECB Press Conference. Any hawkish remarks from ECB policymakers could support the EUR, while a dovish tone could weigh on the shared currency in the near term.