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The EUR/JPY exchange rate increased by 20%.

The USD/JPY exchange rate increased by 25%.

By how much will the EUR/USD exchange rate decrease?

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This seems pretty basic, assuming no arbitrage: $$X^{EUR}_{USD}(t+1) = X^{EUR}_{JPY}(t+1)/X^{USD}_{JPY}(t+1) = (1.2*X^{EUR}_{JPY}(t))/(1.25 * X^{USD}_{JPY}(t)) = 0.96 * X^{EUR}_{JPY}(t)$$ So EUR/USD decreases by 4%.

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