The dollar dipped against yen on Friday as hot Tokyo inflation readings spurred bets that a hawkish pivot from the Bank of Japan (BOJ) could be in the offing. Data showed consumer price inflation in Japans capital accelerated to a nearly 42-year peak this month, piling pressure on the BOJ to step away from stimulus. Attention now turns to a slew of central bank policy decisions, with the Fed, European Central Bank and Bank of England (BoE) all due to make rate decisions next week as they judge what policy adjustments may be required in their battle with rampant inflation against a tough global economic backdrop. Strong resistance can be seen at 130.55(5DMA), an upside break can trigger rise towards 131.68 (38.2%fib).On the downside, immediate support is seen at 129.31 (23.6%fib), a break below could take the pair towards 128.30 (Jan 20th low).
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