The yen plunged against the US dollar on Tuesday following recent comments from senior Japanese officials.
Kazuo Ueda, governor of the Bank of Japan, said in a speech to parliament that the economy was recovering but not showing stability.
"Japan's economy is recovering moderately, although there is weakness in some data," Ueda said.
The BOJ governor did not indicate when the central bank would review its negative interest rate policy, which has been in place since 2016, Reuters reported.
Shun'ichi Suzuki, Minister of Finance of Japan, also said it was too early to talk about beating deflation, despite some gains such as higher wages and record corporate capital spending.
All of these comments have led to market speculation that the Bank of Japan may keep its monetary policy on hold.
The USD/JPY is currently trading at 147.42.
Despite the yen's decline, the dollar held its position against other currencies ahead of the release of a key US inflation figure.
Most analysts believe that the Federal Reserve will announce a cut in interest rates at its June meeting.
"We expect that progress on inflation in the coming months will give the Fed enough confidence to begin a gradual cycle of rate cuts in June," said Michael Gapen, an economist at the Bank of America.
The dollar index .DXY, which tracks the greenback against a basket of global currencies, was up 0.05% at 102.90.
EUR/USD is trading at 1.0924, while GBP/USD is down 0.22% at 1.2784.
AUD/USD and NZD/USD are stable at 0.6615 and 0.6163, respectively.
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