"The yield curves of most sovereign debt markets are bull flattening so the fall in JGB yields has not attracted much attention," said Kyosuke Suzuki, director of forex at Societe Generale in Tokyo.
Markets are also looking out to the Federal Reserve's December meeting minutes due later in the session to gauge the central bank's stance on the timing of its first rate hike, which could occur later this year.
The divergence of monetary policies between the Fed and those of the ECB and the Bank of Japan provided a strong boost to the dollar last year.
"The Fed may not hike rates until June at the earliest. That is too far ahead for participants to make bets on, so meantime market focus rests on the ECB's (Jan 22) meeting and the BOJ, which continues to instil fear due to its unpredictability," Suzuki at Societe Generale said.
A standout performer was the New Zealand dollar, which rose broadly after international milk prices climbed again at a fortnightly auction, in part because of supply concerns.
The currency of the world's largest dairy exporting country rose to $0.7808, pulling well away from Monday's low of $0.7619. It has since trimmed its gains and was last $0.7751.
The kiwi also rallied against its Australian peer, which slid as far as NZ$1.0383 to an all-time low. The Aussie last traded at NZ$1.0404.
Traders suspect the kiwi will reach parity with its Australian peer before long.