Japan's Nikkei 225 index declined 0.11% to 63,684.85 by the midday recess on Tuesday, as lingering concerns over potential yen-buying intervention by authorities kept investors on the sidelines.
The broader Topix index mirrored the sentiment, sliding 0.26% to 3,949.90.
On Monday, the Nikkei fell more than 2%, erasing a one-week high as the currency strengthened significantly against the US dollar.
The cautious trading environment reflects a market still digesting the sharp yen appreciation that triggered a sell-off earlier in the week.
On Monday, the Nikkei fell more than 2%, erasing a one-week high as the currency strengthened significantly against the US dollar.
This volatility has created a backdrop of uncertainty, with traders wary of further policy moves aimed at stabilizing the yen.
Technology stocks continued to face pressure, mirroring a broader selloff in US tech-heavy indices that spilled over into Asian trading.