The yen rose against other major currencies on Tuesday, pulling up from multi-week troughs against the dollar and euro but capped by wariness ahead of this week's Bank of Japan policy review that will come on the heels of the Federal Reserve's meeting.
Speculation of further easing sent the yen reeling late last week, but uncertainty over whether the BOJ will actually deliver fresh stimulus at its April 27-28 meeting helped the Japanese currency recover some ground.
The dollar edged down 0.1 percent to 111.02 yen, having recoiled from a three-week high of 111.90 touched in the previous session. The euro fetched 125.06 yen (EURJPY=R), down 0.2 percent and off Monday's three-week peak of 125.525.
"The market is getting more nervous ahead of the BOJ, and no one wants to be caught short either way on Thursday," said Kaneo Ogino, director at foreign exchange research firm Global-info Co in Tokyo.
"There are some position adjustments around the month-end, and also ahead of Golden Week," he said, referring to the string of Japanese holidays that begins on Friday.
Markets will be open as usual on Monday and Friday next week, but many participants often use the holidays to take the entire week off.
Sterling remained close to overnight highs as Brexit worries ebbed. The pound was steady at $1.4492 after hitting a 10-week high of $1.4520 on Monday, while the euro edged down 0.2 percent to 77.68 pence (EURGBP=R) after sliding to a six-week low of 77.45 on Monday.
Sterling's close above $1.4458 officially ends a series of lower highs marked since June 2015, which "suggests that a near-term trend change might be on the cards," analysts at CitiFX wrote in a note to clients.
Investors are likely to retreat to the side lines ahead of what analysts in Asia are calling Super Thursday, with policy decisions from the Fed and BOJ coming within hours of each other.
For kiwi players, the Reserve Bank of New Zealand's rate decision will also be in focus on Thursday.
The Fed is considered certain to stand pat on interest rates and the focus is on any changes in the central bank's tone, particularly if it looks to prepare markets for hikes in interest rates in coming months.
A Reuters poll showed on Friday showed that economists expect the Fed to stand pat and then deliver a rate hike in June, and follow up with another by the end of this year.
The RBNZ is widely expected to keep rates unchanged this week but cut them by the end of June, according to a Reuters poll.
"If the RBNZ doesn't cut in April, we expect a firm easing bias to be expressed," analysts at Commonwealth Bank said.
The kiwi rose 0.3 percent to $0.6877 NZD=D4, but was still a fair way off a 10-month high of $0.7055 marked on April 19.