The euro fell to a near four-week low against the yen on Tuesday, hit by speculation the European Central Bank may signal easier monetary policy or even cut rates this week.
After data last week showing a sharp drop in inflation, some in markets have said the ECB could cut interest rates on Thursday, or at least lay the groundwork for a move.
The euro fell 0.5 percent to 132.395 yen on the EBS trading platform, its lowest since Oct. 10, having dropped below chart support at 132.63 yen, the 55-day moving average.
The euro was down 0.2 percent at $1.3483, just above a seven-week low of $1.3442 set on Monday.
(Read more: Were the euro bulls just too hasty?)
"The bias is for a weaker euro ... The market had got too long of euro/dollar and, given the uncertainty over the ECB, the theme could be some more squaring of short-term positions," said Paul Robson, currency strategist at RBS.