The Japanese yen strengthened against the US dollar on Friday, pushing USD/JPY lower to around 149.20 as fresh inflation data from Tokyo reinforced expectations that the Bank of Japan will continue raising rates. Japan's core consumer price index, excluding fresh food, rose 2.3% year-on-year in January, matching forecasts and above the BoJ's 2% target for the third consecutive month. Service prices increased 1.4% year-on-year, a sign that wage growth is feeding through to broader price pressures. The data has narrowed the yield differential between US and Japanese government bonds, with overnight index swaps now pricing a 70% probability of a 25-basis-point BoJ hike by the March or April meeting, up from 50% a week ago. A firmer yen can pressure Japanese exporters and the Nikkei index while forcing unwinding of carry trades, and traders should watch support at 149.00 with resistance at 150.00. The upcoming US jobs report and BoJ policy meeting will be key catalysts.