• USD/JPY erases early losses on Japanese demand, trades flat

• Japan markets back from Thu holiday, react to Fed's caution on rates

• Fed's balancing act gives respite to tariff-struck investors

• Upside limited as Japan inflation remains sticky

• Core inflation hits 3% in February, keeps alive BOJ rate-hike bets

• Resistance 149.00, 149.20-25, support 148.50, 148.15-20

• Asia range 148.585-149.00
Fed dot plot:

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