The yen was mixed in afternoon forex trade on Tuesday after the Bank of Japan adopted a two percent inflation target and launched an open-ended easing policy, moves widely expected by the market.
The dollar fetched 89.32 yen in Tokyo afternoon trade, against 89.50 yen in Europe on Monday. US markets were closed for a public holiday.
The euro gained against the Japanese currency to 119.26 yen from 119.20 yen while the single currency bought $1.3354 against $1.3320.
After a two-day policy-making meeting, the Bank of Japan adopted the inflation target demanded by the country's new government to tackle Japan's long-running deflation, while it also launched an indefinite asset purchase scheme in a bid to boost the economy.
"The Bank will pursue aggressive monetary easing ... through a virtually zero interest rate policy and purchases of financial assets," it said.
The BoJ's asset purchases usually come with a fixed expiry date, but the new programme would see 13 trillion yen in monthly purchases "for some time" from its launch next year, it said, similar to the US Federal Reserve's unlimited monthly bond-buying programme, known as quantitative easing.
The yen has been in a steep decline for weeks as markets bet the BoJ would inflate its 101 trillion yen asset-buying programme, its main policy tool. It was the first time in nearly a decade the bank has expanded monetary policy in consecutive meetings.
It was also the bank's fourth major policy move since September but did not impress some analysts.
"It is debatable that the new 'open-ended' easing will result in any more asset purchases than would have happened anyway under the current policy of steadily increasing the ceiling on the (asset-buying programme)," London-based Capital Economics said in a note.
The dollar has won some support after Republicans proposed a three-month increase to the US debt ceiling to give more time to agree on a budget, although it made the move conditional on steep spending cuts.
On Monday, Jean-Claude Juncker ended his tenure as chair of the Eurogroup club of finance ministers with his Dutch successor-in-waiting Jeroen Dijsselbloem hailing newfound "trust" in the euro on financial markets.
The single currency has come under pressure recently after Juncker warned the unit was tipping "dangerously" high levels.
The dollar was mixed against other Asia-Pacific currencies, falling to Sg$1.2270 from Sg$1.2297 on Monday, to 9,655 Indonesian rupiah from 9,745 rupiah, to 53.54 Indian rupees from 53.83 rupees, and to 40.62 Philippine pesos from 40.65 pesos.
The greenback rose to 1,063.20 South Korean won from 1,059.95 won, to 29.75 Thai baht from 29.69 baht, and to Tw$28.99 from Tw$28.95.
The Australian dollar gained to $1.0550 from $1.0518, while China's yuan fetched 14.34 yen from 14.41 yen.