• EUR/JPY falls after Germany’s June manufacturing PMI flatlined at 50.0, matching forecasts.
• The Japanese Yen stays firm as traders remain on high alert for potential currency intervention by government officials.
• The BoJ's core inflation rose 2.7%, and core-core hit 2.1% in May, staying above target and pressuring policymakers.

EUR/JPY extends its losses for the second successive day, trading around 184.30 during the European hours on Tuesday. The currency cross depreciates following the release of HCOB Purchasing Managers Index (PMI) data from Germany. Attention is shifted toward Eurozone PMI data due later in the day.

Germany’s preliminary HCOB Manufacturing PMI flatlined at 50.0 in June, matching forecasts after a 50.1 reading in May and leaving the sector stuck on the threshold between expansion and contraction. Meanwhile, the Services PMI disappointed, dropping to 46.8 from May's 48.1 and missing the 48.7 market expectation. Composite PMI has come in at 48.0, lower than the previous reading of 48.8. The data was expected to arrive at 49.9.

The EUR/JPY cross faces limited upside as the Japanese Yen (JPY) holds its ground amid intensifying fears of government intervention. On Monday, Finance Minister Satsuki Katayama stated that officials are prepared to respond appropriately to currency fluctuations at any time. Compounding these warnings, Chief Cabinet Secretary Minoru Kihara reiterated on Tuesday that the government will take decisive action against volatile foreign exchange moves if necessary.

Adding to the JPY's resilience, fresh economic data from the Bank of Japan (BoJ) on Tuesday showed that underlying inflation pressures remain sticky. The BoJ's new core consumer inflation gauge rose 2.7% in May, while the core-core CPI climbed 2.1%. Although both figures slowed slightly from their April readings of 2.8% and 2.2%, respectively, they crucially remain above the central bank’s 2% target, keeping pressure on policymakers.