Investing.com - The dollar slid against the yen on Monday after investors sidestepped the greenback ahead of the release of the Federal Reserve's March policy meeting on Wednesday.
In U.S. trading, USD/JPY was down 0.19% and trading at 103.08, up from a session low of 103.00 and off a high of 103.39.
The pair was expected to test support at 102.80, the low from March 31, and resistance at 104.12, Friday's high.
The dollar weakened against the yen and most other currencies as markets prepped for Wednesday's minutes of the Fed’s March meeting.
On Friday, data revealed that the U.S. economy added 192,000 jobs in March, below expectations for jobs growth of 200,000.
The U.S. unemployment rate remained unchanged at 6.7%, compared to expectations for a downtick to 6.6%.
The numbers sparked some expectations that even though the Federal Reserve will continue to dismantle its monthly bond-buying program going forward, the pace of which remains up in the air.
Fed asset purchases aim to drive recovery by suppressing long-term borrowing costs, weakening the dollar as a side effect.
The yen, meanwhile, was down against the euro and down against the pound, with EUR/JPY up 0.06% at 141.63, and GBP/JPY trading up 0.03% at 171.23.
The euro received a shot in the arm after ECB policymaker Yves Mersch said earlier that while monetary authorities are working on plans to purchase assets to steer the euro zone away from deflationary purchases, such a program is not required yet.
Governing council member Ewald Nowotny made similar comments.
Separately, Bundesbank President Jens Weidmann said that monetary policy cannot solve the financial crisis, and urged euro zone political leaders to enact fiscal and other reforms.
The comments came after ECB President Mario Draghi said last week that unconventional monetary policy instruments may be necessary to avert the risk of ongoing low inflation becoming entrenched in the euro zone.