• The Japanese Yen continues to be undermined by dovish BoJ remarks on Thursday.
• The Fed rate cut uncertainty keeps the USD bulls on the defensive and caps gains.
• Traders also prefer to wait for the US consumer inflation figures, due next week.

The Japanese Yen (JPY) is seen oscillating in a narrow range against its American counterpart during the Asian session on Friday and consolidating the previous day's heavy losses to a fresh YTD low. The Bank of Japan (BoJ) Deputy Governor Shinichi Uchida said on Thursday that aggressive tightening is unlikely even after an exit from negative interest rate policy. This, along with the recent bullish run in the equity markets, continues to underpin the safe-haven JPY. The US Dollar (USD), on the other hand, stands tall near its highest level in almost three months touched earlier this week and turns out to be another factor acting as a tailwind for the USD/JPY pair.

That said, the uncertainty over the Federal Reserve’s (Fed) rate cut path is holding back the USD bulls from placing aggressive bets. Furthermore, expectations that big Japanese firms could offer sizable wage increases this year will support sustained and stable inflation, allowing the BoJ to pivot away from its ultra-dovish monetary policy settings, and should help limit losses for the JPY. Traders might also prefer to wait for next week's release of the latest US consumer inflation figures for cues about the Fed's future policy decisions, which will play a key role in influencing the near-term USD price dynamics and determining the next leg of a directional move for the USD/JPY pair