The Japanese yen slipped against its major counterparts in early European deals on Monday, as investors hope for policy responses from the U.S Federal Reserve to the Bank of Japan and the Reserve Bank of Australia to weather the damaging economic impact of the coronavirus epidemic.

The U.S. Federal Reserve is expected to cut interest rates when it meets on March 18.

The Reserve Bank of Australia holds its second meeting of the year on Tuesday and the central bank is all-but certain to cut interest rates. Economists expect New Zealand's Reserve Bank to follow suit at its next meeting later this month.

Investors are expecting Beijing to loosen the purse strings after both official and private surveys showed China's factory activity collapsing to its worst levels on record.

In a rare emergency statement, Bank of Japan Governor Haruhiko Kuroda said the central bank would take necessary steps to help protect markets the impact of the coronavirus.

"The Bank of Japan will closely monitor future developments, and will strive to provide ample liquidity and ensure stability in financial markets through appropriate market operations and asset purchases," Kuroda said in a statement.

The yen fell to 120.25 against the euro and 112.56 against the franc, from its prior highs of 118.61 and 111.35, respectively. The next possible support for the yen is seen around 122.00 against the euro and 114.00 against the franc.

The yen reached as low as 108.58 against the greenback and 139.18 against the pound, off its early near a 5-month high of 107.36 and a 4-1/2-month high of 137.30, respectively. The yen may locate support around 111.00 against the greenback and 142.5 against the pound.

The yen depreciated to 71.20 against the aussie, 81.39 against the loonie and 67.79 against the kiwi, reversing from its early high of 69.41, more than 5-month highs of 79.86 and 66.58, respectively. If the yen slides further, 74.5, 83.5 and 70.00 are likely seen as its next support levels against the aussie, the loonie and the kiwi, respectively.

Looking ahead, U.K. mortgage approvals for January and final factory PMI for February are due shortly.

U.S. ISM manufacturing index for February and construction spending for January are set for release in the New York session.

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