Forget for a moment the gloomy movement that continued to be displayed by the US dollar trading in the European session as investors' focus is now turning to the yen ahead of the Bank of Japan (BOJ) policy meeting on Tuesday.
The yen traded stronger earlier in the week following reports that the Japanese government will revise its joint statement with the BOJ on their inflation target.
Kyodo News on Saturday reported that Prime Minister Fumio Kishida may consider revising the agreement signed in 2013 with the BOJ.
He may also add flexibility to the 2% inflation target which could potentially pave the way for an end to very loose monetary policy.
The existing agreement commits the government and the BOJ to achieve the 2% inflation goal as soon as possible.
Examining the movements of other major currencies, the euro and the pound each recorded gains despite the gloomy trading of the US dollar.
European Central Bank (ECB) Vice President Luis de Guindos said the ECB will continue to raise interest rates to fight inflation and is not sure when it will end.
This added support to ECB President Christine Lagarde's statement last week which confirmed the central bank's stance on extending tightening.
Meanwhile, the Aussie dollar rose slightly as investors now await the release of the minutes of the Reserve Bank of Australia (RBA) meeting on Tuesday.
Overall, the major currencies have an advantage against the US dollar, but investors remain wary of any possible trend reversal in the upcoming New York session.
