• USD/JPY rallies 0.15% in Asia after closing 0.4% lower on Thursday

• Sharp lower U.S. yields, decline in oil prices on Iran deal optimism weigh

• Trump said US and Iran could sign a peace deal as soon as this weekend

• But Iran says no final decision has been made on a possible agreement

• Conflicting reports likely to keep USD range bound ahead of weekend

• Cautious trading ahead of risk events next week likely

• BO rate decision Tue, 25bps hike expected; Fed decision Wed, statement key

• Japanese intervention threat likely to cap dollar below 160.50

• Support 159.75-80, 159.50; Thu range 159.51-160.595, Asia 159.95-160.20
US Inflation gauges

(Krishna Kumar is a Reuters market analyst. The views expressed are his own.)