The Japanese yen slipped against its most major counterparts in the Asian session on Friday, after the Bank of Japan left its interest rate unchanged and extended the timeframe for corporate funding program by six months due to concerns about an economic downturn caused by the pandemic.

The Policy Board of the BoJ governed by Haruhiko Kuroda decided to extend the duration of emergency loan facility to September 2021.

The bank also removed upper limit of JPY 100 billion on funds provided to eligible counterparty against loans that financial institutions make on their own.

The board voted 8-1 to retain the interest rate at -0.1 percent on current accounts that financial institutions maintain at the central bank.

The bank will continue to purchase necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero percent.

The bank viewed that there is no need to change the framework of "QQE with Yield Curve Control."

Data from the Ministry of Internal Affairs and Communications showed that Japan consumer prices fell 0.9 percent on year in November. That was roughly in line with expectations following the 0.4 percent decline in October.

The yen exhibited mixed trend against its major counterparts on Thursday. While the currency rose against the greenback and the franc, it weakened against the euro and the pound.

The yen lost 0.2 percent to hit an 8-day low of 126.70 against the euro. The pair was valued at 126.44 at Thursday's close. Immediate support for the yen is possibly seen around the 129.00 level.

The yen was lower by 0.4 percent versus the franc, at 116.92. The CHF/JPY pair had ended Thursday's deals at 116.45. The yen may face support around the 118.00 region, if it falls again.

The yen depreciated 0.4 percent to 103.47 against the greenback from Thursday's closing quote of 103.07. Further drop in the currency may face support around the 106.00 level.

The Japanese currency reached as low as 81.17 against the loonie, down by 0.2 percent from yesterday's New York session close of 81.02. Should the yen falls further, it may test support around the 82.5 region.

In contrast, the yen was modestly up against the pound, at 139.79. The pound-yen pair had ended yesterday's trading session at 140.00. Next near term resistance for the yen is likely seen around the 135.00 level.

After falling to 73.88 at 8:20 pm ET, the yen rebounded against the kiwi, with the pair trading at 73.73. At yesterday's trading close, the pair was quoted at 73.65. Further rally may take the yen to a resistance around the 72.00 area.

Data from Statistics New Zealand showed that New Zealand posted a merchandise trade surplus of NZ$252 million in November, following the NZ$500 million deficit in October.

Exports were down 0.2 percent on year at NZ$5.2 billion, while imports plummeted 17 percent to NZ$4.95 billion.

The yen ticked up to 78.50 against the aussie, following a low of 78.69 seen at 8:15 pm ET. The yen is likely to challenge resistance around the 76.00 mark.

Looking ahead, German PPI and and U.K. retail sales data for November are due at 2:00 am ET.

German Ifo business sentiment index for December will be released in the European session.

Canada retail sales for October and new housing price index for November are set for release in the New York session.

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