• EUR/JPY gains traction around 167.20 in Tuesday’s early European session. 
• The advanced Gross Domestic Product (GDP) from Eurozone/Germany will be closely watched later on Tuesday. 
• The BoJ is anticipated to raise the interest rate by 10 bps at its upcoming meeting on Wednesday. 

The EUR/JPY cross recovers some lost ground near 167.20 during the early European session on Tuesday. The Japanese Yen (JPY) extends its decline for the second consecutive day, which provides some support to the cross. Traders will monitor the release of Gross Domestic Product (GDP) for the second quarter (Q2) from the Eurozone and Germany on Tuesday. On Wednesday, all eyes will be on the Bank of Japan’s (BoJ) policy meeting. 

The weaker German IFO survey results and softer economic data from the Eurozone last week fuelled speculation of another rate cut by the European Central Bank (ECB). ECB President Christine Lagarde highlighted during its latest press conference that the central bank will maintain a data-dependent approach, with September's rate cut still undecided.