The Japanese yen fell against its major counterparts in the early European deals on Tuesday, as European shares rose, tracking positive cues from Asia and Wall Street, after the U.S. and Mexico struck a deal to avoid tariffs being implemented.

Investors shrugged off news that U.S. President Donald Trump has threatened to impose new tariffs on China if his counterpart Xi Jinping does not attend the upcoming G-20 meeting in Japan later this month.

Trump also warned Mexico that tariffs will be reinstated if the country's legislative body does not approve an unrevealed, but "very important" part of the U.S.-Mexico deal.

In economic news, the Bank of Japan said that the M2 money stock in Japan was up 2.7 percent on year in May, coming in at 1,029.8 trillion yen. That follows the downwardly revised 2.5 percent increase in April.

The M3 money stock advanced an annual 2.3 percent to 1,361.7 trillion yen following the 2.2 percent gain in the previous month.

The yen declined to a 1-1/2-month low of 109.76 against the franc and near a 3-week low of 123.03 against the euro, from its early high of 109.49 and a session's high of 122.63, respectively. On the downside, 111.00 and 125.00 are possibly seen as the next support levels for the yen against the franc and the euro, respectively.

The yen reversed from its early highs of 108.35 against the greenback and 137.50 against the pound, falling to 108.67 and 137.96, respectively. The currency is likely to target support around 111.00 against the greenback and 141.00 against the pound.

The Japanese currency hit near a 3-week low of 81.97 against the loonie, off its early high of 81.67. The currency is seen finding support around the 83.5 region.

In contrast, the yen climbed to a 6-day high of 71.53 against the kiwi and held steady thereafter. If the yen rises further, it may find resistance around the 69.00 level.

The yen rose back to 75.44 against the aussie, heading closer to pierce a 5-day high of 75.40 touched at 8:15 am ET. The next possible resistance for the yen is seen around the 73.5 region.

Looking ahead, Eurozone Sentix investor confidence index for June and ILO jobless rate in three months to April are scheduled for release in the European session.

The U.S. producer prices for May are due in the New York session.

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