The yen held steady against major currencies Tuesday as traders awaited the Bank of Japan's policy decision, with the central bank widely expected to keep interest rates unchanged. Market participants are focused on any shifts in the BOJ's guidance regarding the timing of future tightening and its assessment of inflation sustainability.

Matt Simpson, senior market analyst at StoneX, noted the focus will be on guidance around the timing of further tightening, confidence in achieving sustainably higher inflation, and tolerance for yen weakness. With markets still unconvinced the BOJ can tighten meaningfully in the near term, the yen is likely to remain under pressure.

The U.S. dollar slipped 0.1% to 159.33 yen, while the Australian dollar rose 0.2% to 114.56 yen, according to LSEG data. Simpson added that the path of least resistance remains higher for crosses such as AUD/JPY.