EUR/JPY remains subdued around 176.00 ahead of Germany's ZEW Survey data

• EUR/JPY struggles as the Japanese Yen advances, possibly due to BoJ's intervention.
• Japan's Komeito party has announced it is leaving the ruling coalition led by the Liberal Democratic Party.
• The Euro weakens amid ongoing political unrest in France, as President Emmanuel Macron reappointed Sebastien Lecornu as Prime Minister.

EUR/JPY loses ground for the fourth consecutive session, trading around 176.00 during the Asian hours on Tuesday. The currency cross loses ground as the Japanese Yen (JPY) recovers its losses from the previous session due to the possible intervention by the Japanese authorities. Traders will likely observe the final September Harmonized Index of Consumer Prices (HICP) and ZEW Survey data from Germany.

However, the Japanese Yen is poised to lose ground amid political uncertainty in Japan after the Komeito party announced its withdrawal from the ruling coalition led by the Liberal Democratic Party. This withdrawal has heightened doubts about Sanae Takaichi's policy agenda and complicated her path to the premiership.

Meanwhile, Finance Minister Katsunobu Kato said Japan's current economic situation differs from the expansionary policies of the Abenomics era, noting that inflation, rather than deflation, is now the primary concern. He also cautioned against abrupt, one-sided currency movements, stressing that exchange rates should align with economic fundamentals.

The EUR/JPY cross also faces challenges as the Euro (EUR) struggles amid ongoing political unrest in France. President Emmanuel Macron reappointed Sebastien Lecornu as Prime Minister, who has since formed a new cabinet. However, opposition leaders Marine Le Pen and Eric Ciotti have already filed a no-confidence motion in an attempt to oust Lecornu's government.