The greenback was down 0.18% at 1104 GMT to 144.44 yen , after rising 0.27% on Monday.
However, the yen remained close to last week's almost eight-month low of 145.07 per dollar, which prompted Japan's Finance Minister Shunichi Suzuki to warn against excessive yen selling.
Market activity was relatively subdued with U.S. markets closed for the July 4 public holiday.
Across currency markets, investors remained on watch for possible intervention by Japanese authorities to stem yen losses.
Tan said the dollar is likely to rise past 150 yen, which would make intervention "more likely than not".
Persons:
Shunichi Suzuki, Alvin Tan, Masato Kanda, Janet Yellen, Charu, Tan, Harry Robertson, Ankur Banerjee, Kevin Buckland, Shri Navaratnam, Emma Rumney, Christina Fincher
Organizations:
LONDON, Japan's Finance, U.S, Federal, U.S ., Asia FX, RBC Capital Markets, Reserve Bank of Australia, Australian, Treasury, Reuters, Saxo Markets, Japan, Bank, Bank of, Thomson
Locations:
SINGAPORE, Asia, Bank of Japan, London, Singapore