The Japanese Yen received a boost on Thursday, gaining 0.8% to a session top of 131.36 per Dollar in Asian trade, on forecasts the central bank will review the impact of its monetary easing at the upcoming policy meeting.

At the time of writing, the Yen was trading at 131.70 per Dollar. Last month the Bank of Japan made a surprise revision to its bond yield control, yet this didn't address the bond market distortions stemming from the bank's huge bond buying, Reuters reports.

"The report overnight emphasises that next week's Bank of Japan is live for a potential policy change," stated Chris Turner, global head of markets at ING in London.

"You could start to see the normalisation of monetary policy, which would be a huge step for Japan (and) a very positive tailwind for the Yen," he added.

In addition, the U.S. Dollar edged marginally higher ahead of the release of inflation data. The Dollar index rose 0.1% to 103.25, not too far away from the seventh-month low of 102.93 reached earlier this week.

The greenback has already fallen to several-month lows so far this year, on forecasts the Fed may be closing in on the end of its tightening campaign and would not have to hike rates as high as first thought. 

"There's a coherent message of an easing of price pressures in the United States, so even if you get one upside surprise to CPI, that wouldn't completely undermine the trend," Turner added.

"Last Friday's sub-50 ISM services data adds to recessionary fears, and that supports the soft Dollar backdrop where the Fed would be allowed to ease policy later in the year."

Elsewhere, the Pound fell 0.1% to $1.2140 on Thursday, whilst the Euro also dropped 0.1% to $1.0747 after hitting a seven-month high of $1.07765 in the previous session. The Australian Dollar edged down 0.2% to $0.6893, whilst the New Zealand Dollar declined 0.3% to $0.6344.