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Location: TOKYO/SYDNEY (Reuters) - The dollar steadied against the euro and yen on Monday following last week's large swings, as the market braced for Japanese and U.S. central bank policy meetings that could provide investors with fresh incentive. The euro was little changed at $1.1156 , not far from a one-month high of $1.1218 set on Thursday when it soared after the European Central Bank eased extensively but also signaled that it may limit future interest rate cuts. The dollar was nearly flat at 113.93 yen having gained 0.6 percent on Friday. An improvement in risk appetite on the back of rising equities and crude oil had lifted the greenback from a low of 112.225 to as high as 114.45 versus the safe-haven yen last week. The Bank of Japan, fresh from adopting negative interest rates in January, is expected to stand pat when its two-day meeting ends on Tuesday. The market will still sift through the BOJ's policy statements for any hints that it may be losing confidence in negative rates after the ECB suggested it will have to be cautious on cutting rates ever deeper into negative territory. "The potential limits of monetary policy will be the market's theme after the ECB, which adopted negative rates before the BOJ, seemingly reverted its focus back to quantitative easing last week," said Shin Kadota, chief Japan FX strategist at Barclays (LON:BARC) in Tokyo. The BOJ's surprise decision to take rates below zero on Jan. 29 did little to weaken the yen, which eventually soared to a 16-month high against the dollar last month. Meanwhile, the dollar index wallowed at one-month lows against a basket of major currencies with the Federal Reserve seen almost certain to stand pat at this week's policy review. Dollar bulls are hoping the central bank will signal an intention to hike more than once this year. Conversely, any hint that the tightening cycle could be drawn out will likely result in a further fall in the dollar, traders said.