USD/JPY fell 0.3% to 141.39, with the yen recovering to a degree from steep losses last week ahead of Friday’s Bank of Japan policy meeting.
The BOJ has given scant indication that it plans to tighten its ultra-loose policy in the near term and is widely expected to stand pat on interest rates and its yield curve control measures this Friday.
The Japanese Government said on Monday that inflation is likely to moderate further this year, before slowing to around 1.5% next year when stripping away the effect of one-off factors.
Elsewhere, GBP/USD rose 0.2% to 1.2879, helped by last week’s strong retail sales data, AUD/USD rose 0.1% to 0.6739, inching up on the prospect of more stimulus measures in China given the importance of that market to the Australian export market, while USD/CNY rose 0.1% to 7.1943.
