FOREX-Dollar edged lower ahead of economic data, yen rises

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The dollar struggled for direction on Tuesday ahead of key data that could provide further clues about the U.S. Federal Reserve's policy path, while the yen rose after figures confirmed inflation was above the Bank of Japan's (BOJ) target. Japan's core consumer inflation exceeded forecasts, keeping alive some expectations that the BOJ might end negative interest rates by April. "The yen rose after the release, but rather modestly considering its heavy short positioning and the magnitude of the sell-off since the start of the year," said Francesco Pesole, forex strategist at ING.