The yen declined after Friday's rally that was spurred by monetary policy hawk Shigeru Ishiba winning the leadership race for Japan's ruling party.
USD/JPY rose as much as 0.5% to 142.95 following a 1.8% drop in the last session. Ishiba is planning to dissolve the country's lower house on Oct. 9 and hold a general election on Oct. 27, NHK reports, without attribution.
"We've had a big move, so there is likely some profit taking ahead of US economic data this week," said David Forrester, a strategist at Credit Agricole CIB. "Friday's LDP election result represents a structural shift away from Abenomics".
The Bloomberg Dollar Spot Index and Treasury yields were little changed.
AUD/USD rose 0.3% to 0.6921; NZD/USD up 0.3% to 0.6360.
Both pairs are set for their best quarterly gain this year.
Source: Bloomberg
