Ella 
USD/JPY has attracted some sellers around 154.15 in early Asian trade on Friday. The yen strengthened as markets maintained risk aversion while rising tensions between Israel and Iran boosted safe-haven flows. However, strong U.S. economic data and hawkish comments from Federal Reserve officials may limit USD/JPY upside in the short term. The Bank of Japan (BoJ) meets next week and is expected to raise its inflation forecast for the current fiscal year in its quarterly report.
Japan’s inflation slowed in March but remained above the central bank’s 2% target, the Statistics Bureau reported on Friday. The global consumer price index rose at an annual rate of 2.7% in March, compared with 2.8% in the previous month. The annual core inflation rate in March rose to 2.6% from 2.8% in the previous month to 2.6%, which was lower than the market consensus of 2.7%.
On Thursday, Bank of Japan Governor Kazuo Ueda said the Bank of Japan may raise interest rates again if the depreciation of the yen significantly increases inflation. Bank of Japan Governor Kazuo Ueda also said the impact of currency trends could affect the timing of the next adjustment to monetary policy.
