The dollar gained against the yen in early Tokyo trade, buoyed by talk of dollar buying to fulfill M&A activity ahead of the Tokyo fix. However, the dollar slipped after failing to breach offers from Japanese exporters around Y121.80. The euro was little changed on the session, with trade muted due to a public holiday in Singapore. The euro hit a session low of $0.8800, before bouncing to $0.8825 as the dollar fell against the yen. Overnight comments from Federal Reserve Chairman Alan Greenspan had little impact on FX markets.