Euro Slips Against Yen Ahead of German Inflation Data Release

The euro slipped against the Japanese yen on Monday, as investors took a cautious approach ahead of Germany's inflation data release. The EUR/JPY pair traded lower in early European trading, with the euro around 157.20 yen, down from 157.80 earlier in the day.

The German inflation data is a key input for the European Central Bank's rate decisions. A hotter-than-expected print could reinforce expectations that the ECB will keep monetary policy tight for longer, while a softer figure might fuel speculation of earlier rate cuts.

Market participants are awaiting Germany's preliminary consumer price index (CPI) figures for the current month, due out later in the day. The outcome will likely provide fresh clues on the ECB's next move and the near-term direction of the currency pair.