2014.04.2423:36:00UTC+00Yen Falls After Japan CPI Data

The Japanese yen slipped against other major currencies in Asian deals on Friday, as the country's consumer price index rose in line with forecasts in March, signaling that the policy makers' attempt to defeat deflation are working.

Nationwide consumer prices in Japan were up 1.6 percent on year in March, the Ministry of Internal Affairs and Communications said today - in line with expectations and up from 1.5 percent in February.

Core CPI, which strips out the volatile costs of food, added an annual 1.3 percent - unchanged from the previous month but shy of forecasts for 1.4 percent.

Overall inflation for the Tokyo region spiked 2.9 percent on year in April - below expectations for 3.0 percent but up sharply from 1.3 percent in March.

Escalating tensions in Ukraine hurt investor sentiment in Asia. On Thursday, Ukraine troops killed five rebels, while Russia commenced military drills near the border, raising anxiety in the region.

The yen slipped to 102.51 against the greenback, reversing from an early high of 102.18. The next possible downside target for the yen is seen around the 103.00 region.

The yen that closed yesterday's deals at 116.06 against the franc declined to a 2-day low of 116.21. If the yen extends slide, 117.00 is seen as the next possible downside target level.

The yen declined to 141.76 against the European currency, retreating from a high of 141.35 hit in previous deals. On the downside, 142.6 is seen as the next support level for the yen.

The yen reached a 2-day low of 172.27 against the pound, down from yesterday's closing quote of 171.91. An extension of downtrend may lead the yen to support at the 173.6 region.

The yen reached as low as 87.76 against the New Zealand dollar, 92.97 against the loonie and 94.95 against the aussie. The yen is likely to find support around 88.5 against the kiwi, 93.5 against the loonie and 95.7 against the aussie.

Looking ahead, U.K. retail sales and mortgage approvals for March are due in the European session.

The U.S. flash services PMI and Reuters/University of Michigan's final consumer sentiment index for April are set for release in the New York session.