Investing.com - The U.S. dollar edged higher against the yen on Friday, after the Bank of Japan left its monetary policy unchanged and as the greenback regained some strength after positive U.S. data on Thursday.
USD/JPY hit 123.22 during late Asian trade, the session high; the pair subsequently consolidated at 123.14, adding 0.16%.
The pair was likely to find support at 122.45, Thursday's low and resistance at 123.79, the high of June 16.
At its monthly policy meeting, the BoJ maintained its pledge to increase base money at an annual pace of ¥80 trillion through aggressive asset purchases. The decision was made by an 8-1 vote.
Commenting on the decision, BoJ Governor Haruhiko Kuroda said that with capital expenditure growing and business sentiment improving, inflation is likely to reach the 2% target without the need for more monetary easing.
Meanwhile, the greenback remained supported after data on Thursday showed that U.S. initial jobless claims fell by 12,000 to 267,000 last week, pointing to ongoing strengthening in the labor market.
A separate report showed that factory activity in the U.S. mid-Atlantic region expanded at the fastest rate in six months in June.
Data also showed that showed that U.S. consumer prices increased at the fastest rate in more than two years in May, climbing 0.4% after a 0.1% gain in April. But economists had forecast an increase of 0.5% and inflation was still well below the Fed’s 2% target.
The yen was flat against the euro, with EUR/JPY at 139.67.
Sentiment on the single currency remained vulnerable after a meeting between Greek and euro zone officials broke down on Thursday, bringing the prospect of a Greek exit from the single currency bloc a step closer.
International Monetary Fund Head Christine Lagarde said there was an urgent need for dialogue "with adults in the room".
The current bailout for Greece expires on 30 June when Athens is also due to repay the IMF around €1.6 billion. Lagarde said if the payment is not made on time, Greece will be declared to be in default and would disqualify itself from receiving any further IMF funds.