TOKYO (Kyodo) -- The U.S. dollar and the euro retreated against the yen in Tokyo on Monday after recent rallies on position adjustments and profit taking, as investors took a breather ahead of the Bank of Japan and U.S. Federal Reserve policy meetings slated for Tuesday. At 5 p.m., the dollar fetched 82.22-23 yen versus 82.42-52 yen in New York and 81.63-64 yen in Tokyo at 5 p.m. Friday. It moved between 82.11 yen and 82.54 yen, trading most frequently at 82.24 yen. The euro traded at 107.78-82 yen and $1.3109-3110 against 108.15-25 yen and $1.3116-3126 in New York and 107.92-96 yen and $1.3221-3222 in Tokyo late Friday afternoon. The dollar briefly hit 82.65 yen in New York on Friday, its highest level since late April last year, after upbeat U.S. jobs data for February underpinned hopes of a steady economic recovery and also quelled speculation of fresh stimulus from the Fed. But in Tokyo, the dollar pared its gains amid a dearth of fresh incentives after the completion of a string of major events last week. It was stuck directionless in the lower to mid-82 yen range while some investors turned to the yen following its recent decline against the dollar and other major currencies. ''It wasn't like there was any major trading cue, but given that the yen has been sold heavily recently, buying kicked in as players unwound their positions,'' said Junya Tanase, chief foreign exchange strategist at JPMorgan Chase Bank. Similarly, the 17-nation eurozone currency's slip against the yen was largely due to short-term position adjustment by investors after the single European currency's recent rapid gains, Tanase said. While Greece's completion late last week of a debt exchange deal with private investors cleared the way for it to receive an international bailout package and avoid a messy default for now, it remains uncertain how the swap will eventually impact the markets, analysts said. Many investors are now waiting to see how the debt restructuring plays out, including whether Athens will require another bailout in the future given its poor growth prospects, as well as new concerns over fiscal health elsewhere in Europe such as in Portugal and Spain creating bearish sentiment about the common currency, they said. ''Considering that the economic outlook for Europe as a whole is not that good down the road, there is little support for further buying of the euro,'' a senior dealer at a Japanese bank said. Citing the stronger-than-expected February U.S. nonfarm payrolls released Friday, he added, ''Right now the United States is the only country with good (figures and prospects) and the market is now basically on a dollar-buying track, which steadily pushes down the euro.'' The dollar is also expected to maintain its uptrend against the yen, possibly topping the 83 yen line in the near future, the dealer said. Prime Minister Yoshihiko Noda's remark Monday morning that the yen remains relatively overvalued despite recent depreciation, hinting the government hopes it will extend its losses, drew little market response, traders said. Market participants are now awaiting the results of the respective policy meetings of the Bank of Japan and the Federal Open Market Committee for new trading cues, although no major policy changes are anticipated. ''Since the BOJ just made such a big move at the previous meeting, I don't think there will be more major maneuvers in just a month's time, although expectations especially among overseas investors are running high for a more aggressive tone from the BOJ,'' the senior Japanese bank dealer said. He was referring to the Japanese central bank's decision at the previous meeting in February to ease its monetary policy further by expanding its asset purchase program by 10 trillion yen and introduce a de facto inflation target for the first time. The moves sparked the yen's recent decline against its major peers.

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