“Japan's consumer inflation may accelerate to around 2% from April but it will be driven mainly by rising energy costs,” Bank of Japan (BOJ) Governor Haruhiko Kuroda said on Friday.

Additional quotes

The recent fall in the yen's real, effective level reflects Japan’s low inflation compared with that of its trade partners.

BOJ’s goal is to generate a positive cycle under which corporate profits, jobs and wages rise in tandem with a gradual increase in inflation.

Market reaction

USD/JPY is trading near-daily lows of 121.74, having witnessed a quick retracement from six-year highs of 122.43 in the last hours.

The spot is down 0.40% on the day, as the yen rebounded on higher Japanese inflation.