Investing.com - The U.S. dollar edged higher against the yen on Friday, as market sentiment improved amid fresh hopes over progress on the Greek debt front, although the minutes of the Bank of Japan's latest policy meeting lent support to the local currency.
USD/JPY hit 121.20 during European afternoon trade, the session high; the pair subsequently consolidated at 120.96, adding 0.13%.
The pair was likely to find support at 119.66, Thursday's low and resistance at 121.52, the high of March 17.
Market sentiment strengthened after European Union leaders said earlier Friday that Greece has agreed to come up with a new reform plan in the coming days to secure the additional bailout funds required to prevent the country's bankruptcy.
Ahead of the talks, European Parliament President Martin Schulz had warned that Greece’s financial situation was "dangerous", with debt payments looming.
Also Friday, the minutes of the BoJ's February policy meeting showed that government dropped their calls to hit the bank's inflation target "at the earliest date possible," signaling to the BoJ that it shouldn't rush in accelerating inflation.
The comments fuelled expectations that the central bank will refrain from implement further easing measures to reach the inflation target by April.
Meanwhile, the dollar remained fragile after the Federal Reserve indicated on Wednesday that U.S. economic growth has moderated and that interest rates will rise at a slower pace than previously forecast.
The Fed dropped a reference to being "patient" on the timing of rate hikes, but added that the change in its forward guidance did not mean it has decided on the timing for an initial rate increase.
The yen was also lower against the euro, with EUR/JPY advancing 0.69% to 129.64.