TOKYO (AFX-ASIA) - The dollar/yen eased in technical trade ahead of policy moves by the Japanese government and central bank, and encouraged by strength in Japanese equities, dealers said. The dollar fell back after failing to break 135 yen overnight as an option expiry spurred speculative buying of the US currency, dealers said, adding an investor had previously been protecting the 135 yen level ahead of the expiry. "This range-option expired yesterday. That was the reason speculators wanted to test the upside," UFJ Bank foreign exchange vice president Satoshi Tate said. "But there are still people looking for a range of 130-135 yen. Exporters are selling dollar/yen, and fund managers. The dollar was close to 135 yen so people started to sell," he added. "The Nikkei's also higher but, overall, people are saying the dollar/yen's move was caused by speculators accumulating positions ahead of ... tomorrow's BoJ meeting, so if there's nothing special, there are people who will sell." Bank of Japan governor Masaru Hayami offered a commitment to the government to consider further monetary easing at the bank's policy board meeting tomorrow despite the likely lack of new reform measures. "Maybe the BoJ will offer something special this time," Tate said, but added that the market expects the government and the central bank eventually to be forced into a reflationary policy that will weaken the currency. Investors have become increasingly sceptical about the possibility of any new policies from the Japanese government when it releases its latest anti-deflation package tonight. Minister of Financial Affairs Hakuo Yanagisawa said this morning that an unconsidered capital injection into major banks -- a key hope for the market -- will weaken momentum for reform at the banks and at indebted companies. Meanwhile, political pressure on the bank, with no reciprocal offer of reform by the government, has been viewed negatively by the market previously, hurting government bond prices. "Most people think that the only thing that Japan can do is take a reflationary policy so many think the dollar will regain the upside sooner or later, but not now," Tate said.