Japan's upcoming spring wage discussions, also known as the "shunto" negotiations, will be in focus for investors watching the BOJ's interest rate moves. The negotiations will start some time in February, and larger companies will respond around mid-March.

The Japanese yen is in negative territory on Friday. This follows a two-day rally which saw the yen jump 1.9% and hit a three-month high. In the European session, USD/JPY is trading at 151.94, up 0.39% on the day. On the data front, Japan’s household spending was much stronger than expected and the US releases nonfarm payrolls.

Japanese household spending rose for the first time in five months in year-on-year terms in December and at a much faster-than-expected pace, but the government said it was too early to call a bottoming out in consumption's downtrend.