* Euro/dollar breaks above Ichimoku cloud

* $1.3125 retracement level may be one target for euro

* Kiwi slips after weaker-than-expected inflation data

The dollar weakened on Friday, crawling towards a seven-month trough against the yen after a series of U.S. data this week underscored a slackening in the economy's recovery.

Market players closely watched whether the dollar could hold above its July 1 low of 86.96, its lowest since early December, as a fall below that level could boost the possibility of the greenback dropping to 84.82 yen, a 14-year low reached last November. Read more